Founder of the IMANI Centre for Policy and Education, Franklin Cudjoe, is demanding a refund to the state, monies paid to Strategic Mobilisation Ghana Limited (SML) for its transaction audit contract with the Ghana Revenue Authority (GRA).
Mr. Cudjoe says the entity has been proven to be illegal and should return every pesewa it has earned from the state from that contract.
An audit conducted by KPMG into the contract after the Fourth Estate’s investigation disclosed some fraught revealed that the company had been paid GH¢1,061,054,778 as compensation from the start of the contract till its suspension.
But the SML, in a release refuted the amount saying it is inaccurate. It said KPMG stated the figure without taking into consideration the investments the company made aside from the taxes it paid to the government within the period.
“KPMG quotes a figure as compensation to SML. It is interesting to note that this figure is quoted without reference to the investments made and the taxes paid by SML over the period within the consolidated contract.
“The compensation of GH¢1,061,054,778.00 stated by KPMG is inaccurate,” SML stated.
It further regarded as misleading, an omission by KPMG to the effect of a 31.5 per cent of total compensation which was deducted as GRA taxes, creating an imbalance impression to the public.
“SML finds that KPMG’s failure to state GRA taxes of 31.5% taken before payment, interest payments of 32% plus the investment repayment made by SML, and other taxes/duties over the period creates a very unbalanced impression of the relationship between the compensation and the investment and other related costs. This omission is highly misleading,” SML remarked.
SML also clarified that the audit assurance report by KPMG confirmed that it has not received a payment of $100 million from the government.
Meanwhile, Franklin Cudjoe, has in a post on his Facebook Saturday, April 27, 2024 said “please let’s ask SML to pay back all monies they have been paid. They were and are an illegal entity.”
KPMG report on SML: Make report public, lay copy in Parliament – Adongo tells Akufo-Addo
