Renegotiate GRA-SML Ghana contract – Akufo-Addo tasks Finance Ministry

President Akufo-Addo Takes Action on KPMG's Findings and Recommendations Regarding GRA-SML Transactions
President Akufo-Addo Takes Action on KPMG's Findings and Recommendations Regarding GRA-SML Transactions

President Nana Addo Dankwa has taken decisive action on the findings and recommendations presented by concerning the transactions between the (GRA) and Strategic Mobilization Ghana Ltd (SML).

The President, on Wednesday, 27th March 2024, received the final report of the audit conducted by KPMG, which delved into the interactions between GRA and SML. In response, by a letter dated Thursday, 18th April 2024, the President has issued directives to both the and the Ghana Revenue Authority, based on the comprehensive findings outlined by KPMG.

The audit by KPMG unearthed several crucial findings:

  1. No technical needs assessment was conducted before engaging SML, though it wasn't legally required. However, subsequent reports highlighted potential revenue leakages.
  2. GRA sought approval from the Public Procurement Authority (PPA) for single-source procurement of SML's services, which wasn't granted. Nevertheless, GRA engaged SML as a subcontractor without proper approvals.
  3. The 2023 Contract extended SML's services without parliamentary approval, and no evidence was found of GRA Board discussion and approval for previous contracts.
  4. KPMG concluded that SML partially delivered on services, but GRA lacked monitoring and evaluation processes.
  5. The pricing model used differed from standard practices, and substantial fees were involved.

In response to these findings, KPMG proposed several recommendations:

  1. Consider terminating contracts with SML.
  2. Conduct comprehensive assessments for potential services in the petroleum and minerals sectors.
  3. Renegotiate contracts for transaction audit and external price verification services.
  4. Monitor SML's performance in renegotiated contracts.

President Akufo-Addo has accepted KPMG's recommendations and issued the following directives:

  1. Conduct assessments before implementing services in the petroleum and minerals sectors.
  2. Consider terminating transaction audit and external price verification services.
  3. Review and potentially renegotiate the downstream petroleum audit contract, focusing on the fee structure.
  4. Ensure compliance with the Public Financial Management Act (Act 921) in all future contracts.

The Ministry of Finance and the GRA are tasked with promptly executing these directives and providing the President's Office with progress updates.

President Akufo-Addo commends KPMG for its thorough audit and emphasizes the government's commitment to transparency and accountability in all dealings.

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