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The Ghana Revenue Authority (GRA) has officially terminated its Transaction Audit and External Verification Service Contract (AEVS) with Strategic Mobilization Ghana Limited (SML), following a directive from President Akufo-Addo based on recommendations from the audit firm KPMG.
In a statement titled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated Friday, May 3, 2024, GRA management announced the termination of the Upstream Petroleum and Minerals Revenue Audit portions of the contract. These portions of the contract have also been suspended pending further review.
Additionally, the GRA has decided to amend the Measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee arrangement. The authority will thoroughly review other contract provisions, including service delivery expectations, termination clauses, and intellectual property rights.
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These actions are in response to the presidential directives issued on April 18, 2024, regarding the recommendations made by KPMG concerning the contracts between the government of Ghana, acting through the Ministry of Finance and the GRA, and Strategic Mobilization Ghana Limited.
In a letter signed by the GRA Commissioner General, Ms. Julie Essiam, addressed to the Managing Director of SML, the authority highlighted the need for a comprehensive technical needs assessment, value-for-money assessment, and stakeholder consultations before the Upstream Petroleum and Minerals Revenue Audit portions of the contract can take effect. Copies of the letter have been sent to several high-ranking officials, including the Vice President, the Chief of Staff, the Finance Minister, and the Director of Legal at the Ministry of Finance.
The decision to renegotiate the contract follows the President’s acceptance of recommendations made by KPMG after its audit of the deal. The audit findings prompted the need for a review of the revenue assurance contract, highlighting areas where improvements are necessary to enhance its effectiveness.
The GRA’s actions aim to address concerns raised by various stakeholders, including investigative reports and recommendations from audit firms, ensuring transparency, accountability, and efficiency in government contracts and operations.
