KPMG’s audit report has unveiled the positive impact of the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML), showcasing a notable increase in state tax revenue.
According to the report, the contract has led to a substantial surge in volumes, marked by a recorded rise of 1.7 billion litres, consequently resulting in a tax revenue increase to the State totaling GH¢ 2.45 billion.
Furthermore, the report highlights qualitative advantages, including the implementation of 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML has installed flowmeters.
The report also underscores SML’s performance in conducting six levels of reconciliation, which has further bolstered the monitoring process.
These revelations were disclosed in a press statement issued on Wednesday, April 24, 2024, by Eugene Arhin, the Communications Director of the Presidency.
However, the report also recommends a review of the contract for downstream petroleum audit services, particularly focusing on the fee structure. This indicates that while the contract has yielded significant improvements in revenue generation, there are aspects requiring further examination and adjustments to ensure fairness and efficiency.
“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.”
President Nana Addo Dankwa Akufo-Addo took action on January 2, 2024, by commissioning KPMG to investigate the contract between SML and GRA following an exposé by the Fourth Estate.
Subsequently, President Akufo-Addo has been briefed on the findings of the KPMG audit report concerning the revenue mobilisation contract between GRA and SML.
The report was officially presented to him on Wednesday, March 27, as revealed in a Facebook post by Eugene Arhin, the Director of Communications at the Presidency, on Wednesday, April 3.