Following his questions to President Addo Dankwa Akufo-Addo on the order for KPMG to audit the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML), Manasseh Azure Awuni, has stated what he would have done if he was in the President’s position.
The founding Editor-in-Chief of the Fourth Estate who disclosed the alleged shady deals in the contract per its documentary in a year-long investigations says instead of calling for suspension of the contract and audit, the President should have cancelled the contract and initiate an investigation.
He tells Alfred Ocansey on Ghana Tonight on TV3 Tuesday, January 02, 2024, that after SML admitted to not performing the roles assigned to it in the contract but has been receiving payments in that effect, there is enough evidence for the President to terminate the existing contract which will reap over US$100 million to the company annually for 10 years.
“If I were in the shoes of the President, I would straight away call for the cancellation of the contract and ask for investigations to be done concerning the existing one which has been signed since 2019,” Manasseh indicated, adding that “and I think there is enough evidence for the President to have taken action especially now that Parliament is investigating and also the OSP is also in this matter. So I’m a bit confused as to the end game, the intention on the mind of the President taking this action.”
Background
A year-long investigation by Evans Aziamor-Mensah, Adwoa Adobea-Owusu and Manasseh Azure Awuni of The Fourth Estate, revealed that the company (SML), with the help of a section of Ghana’s media, had made false and unsubstantiated claims of its operations that have served as the basis for the payment it received.
The Fourth Estate asserted that, it appears the Ministry of Finance and the GRA were aware the claims were false, for some officials of the GRA said they had confronted the company about its claims of savings and volumes on two separate occasions.
A few hours after the reporters confronted the management of SML with the findings of the investigation and asked for a response, the major services it claimed to render to the government disappeared from the company’s website.
The investigation also uncovered that at a time players in the downstream petroleum sector were questioning the relevance of SML’s involvement, the Minister of Finance, Ken Ofori Atta, initiated a more outrageous deal that would entitle the company to over $100 million every year for the next 10 years.
This, is what caused President Addo Dankwa Akufo-Addo, to order an audit into the contract.
“Accordingly, KPMG, an Audit, Tax and Advisory Services firm, has been appointed to conduct an audit into the transaction, which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain,” a press release dated Tuesday, January 02, 2024 and signed by the Director of Communication at the Presidency, Eugene Arhin, stated.
It added that the Terms of Reference of the audit are as follows: “i. conduct an audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA, and assess how the arrangement aligns with specific needs; ii. assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML;
iii. evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations; iv. evaluate the value or benefit that SML has so far offered to the GRA through this engagement; v. review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues; and vi. submit a report on your findings on the above, together with appropriate recommendations.”
The press release added that, “President Akufo-Addo has tasked KPMG to complete the assignment in two weeks.”
“The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit, and has also directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms,” the statement concluded.
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