President Nana Addo Dankwa Akufo-Addo has directed the Ghana Revenue Authority (GRA) and the Ministry of Finance to initiate negotiations for the revenue assurance contract with Strategic Mobilisation Limited (SML).
The president stressed the importance of closely monitoring and periodically evaluating the renegotiation to ensure it aligns with expectations.
This instruction was conveyed through a press statement issued by Eugene Arhin, the Communications Director of the Presidency, on Facebook.
“There is a clear need for the downstream petroleum audit services provided by SML. GRA and the State have benefited from these services since SML commenced providing them. There has been an increase in volumes of 1.7 billion litres and an increase in tax revenue to the State of GHS 2.45 billion. KPMG also observed that there were qualitative benefits, including a 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters and six levels of reconciliation done by SML.
“This minimises the occurrence of under-declarations. However, it is important to review the contract for downstream petroleum audit services, particularly the fee structure. Given the experience and proficiency of SML over the last four years of providing this service, the President has directed that the fee structure be changed from a variable to a fixed fee structure. Other provisions of the contract worth reviewing include clauses on intellectual property rights, termination, and service delivery expectations,” he wrote.
The decision to renegotiate the contract follows the president’s acceptance of the recommendation by KPMG after its audit of the deal.
The examination discoveries instigated the necessity for a reassessment of the revenue assurance agreement, underscoring areas where enhancements are required to boost its efficiency.
On January 2, 2024, President Nana Akufo-Addo authorized KPMG to scrutinize the pact between SML and GRA, incited by an exposé from media entity, the Fourth Estate.
President Nana Addo Dankwa Akufo-Addo has subsequently obtained the KPMG audit findings concerning the revenue mobilization pact between GRA and SML.
The findings were presented to him on Wednesday, March 27, as declared in a Facebook post by Eugene Arhin, the Director of Communications at the Presidency, on Wednesday, April 3.
Read the full contents of the statement from the presidency below:
