The KPMG audit report on the contracts between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML), highlighted by President Akufo-Addo, shows the successful collaboration between the two companies.
Per the audit report, the collaboration resulted in the government earning GHC2.45 billion from the downstream petroleum sector.
“Regarding the downstream petroleum audit services, KPMG determined that there was an incremental volume of 1.7 billion litres and an incremental tax revenue of GHS 2.45 billion for the period under review.
“There were also qualitative benefits, including a 24/7electronic real-time monitoring of the outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters.”
KPMG also confirmed that SML received from the government a total of GH¢1,061,054,778.00 from 2018 to the present date when President Akufo-Addo called for the suspension of the contract.
The president took action in January by appointing KPMG to conduct an immediate audit of the transaction between GRA and SML after a documentary by the Fourth Estate raised concerns about SML allegedly benefiting from the state without performing any work.
The contract, initiated by the Ministry of Finance, aimed to enhance revenue assurance in the downstream petroleum sector, upstream petroleum production, and the minerals and metals resources value chain.
As part of his recommendations, President Akufo-Addo has directed that the fee structure under the contract be changed from a variable to a fixed fee structure.
This change is expected to enhance transparency and accountability in the collaboration between GRA and SML, ensuring that the government receives value for money.
“…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,” the report from the Presidency added.
Below is the full report by President Akufo-Addo.
