A source at the office of the President has confirmed that, President Akufo-Addo is set to authorize the release of the KPMG audit report on the controversial Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) contract.
The Chief Director at the Office of the President, H.M. Wood, on Wednesday, May 8, 2024, declined a demand by the Media Foundation for West Africa (MFWA) for the full KPMG report on the revenue assurance contract between the GRA and SML.
The MFWA in April this year, requested a copy of the comprehensive KPMG audit report on the GRA/SML revenue assurance contract, using the Right to Information Act, 2019 (Act 989), otherwise called the RTI Act.
However, in a statement on Wednesday (8 May), the Chief Director at the Office of the President said “Upon careful consideration and in accordance with section 5 (1) (a) and (b) (i) of the RTI Act, I regret to inform you that your request has been refused.”
“Section 5 (1) (a) and (b) (i) states that information prepared for or submitted to the president or vice-president containing opinions, advice, deliberations, recommendations, minutes, or consultations, is exempt from disclosure and that disclosure of such information would compromise the integrity of the deliberative process by revealing the thought process, considerations, and influence on decision-making reserved for the highest offices of the land,” the statement added.
However, Asaase News says its sources at the Jubilee House indicate that the President will authorize the release of the report because there is nothing to hide.
“I can say on authority that both the letter to GRA and the press release from the presidency on the KPMG report on the GRA-SML deal captured, without omission the substance and essence of all the material findings and, it is important to add that the President gave not his recommendations to GRA but the totality, without reservation, of all the recommendations by KPMG.
“President Akufo-Addo very simply passed on all that KPMG recommended should be done about SML contracts, including canceling two of them, suspending two others, and renegotiating the variable fee of the one that was recommended to remain but altered to have a fixed fee,” the Asaase News source at the presidency said.
The source further reckoned that “The report is yet to be made public because there is a sense that GRA must be allowed to recommend without any inordinate pressure the actual substance of the recommendations.”
Asaase said when it contacted a senior source at the Ministry of Finance, the response was emphatic that GRA may even go further than what was recommended and that after undertaking the need assessment and full stakeholder consultations on the two outstanding contracts regarding the monitoring of mining production and upstream oil and gas production, GRA, if it is to go ahead, will open the two contracts up for competitive bidding.
GRA-SML investigations
President Akufo-Addo received the KPMG report on 2 April 2024, 3 months after tasking the audit firm to investigate the GRA-SML deal. The government after reviewing the report, issued a press statement, directing the GRA to review the deal among other directives.
President Akufo-Addo on 2nd January 2024, appointed and tasked KPMG, a leading audit, tax, and advisory services firm, to conduct an immediate audit of the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML), a contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production, and minerals and metals resources value chain.
The President’s directive was contained in a statement issued by the communications directorate of the Jubilee House and signed by the director of communications at the presidency, Eugene Arhin. The terms of reference of the audit ordered by the president were six-fold.
First is for KPMG to conduct an audit to ascertain the rationale or needs assessment performed before the contract approval by GRA, and to assess how the arrangement aligns with specific needs, and secondly, assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML.
Third, evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations and fourthly evaluate the value or benefit that SML has so far offered to the GRA through this engagement.
The fifth is to review the financial arrangements, including pricing structures, payment terms, and resolution of any financial compliance issues; and lastly, submit a report on your findings on the above, together with appropriate recommendations.
GRA -SML contract review
The Ghana Revenue Authority (GRA) in compliance with the recent directives given by President Akufo-Addo on its deal with Strategic Mobilization Ghana Limited (SML), has terminated the transaction Audit and External Verification Service Contract (AEVS) with SML.
GRA has also decided to amend the measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee structure. The Authority also says it will thoroughly review other provisions such as service delivery expectations, termination, and intellectual property rights.
The GRA disclosed this in a letter entitled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated Friday, 3 May 2024, signed by its Commissioner General, Ms Julie Essiam, and addressed to the Managing Director of Strategic Mobilization Ghana Limited (SML).
The GRA letter is copied to the Vice President, Dr Mahamudu Bawumia, the Chief of Staff, Mars Akosua Frema Osei Opare, Secretary to the President, Nana Bediatuo Asante, the Finance Minister, Mohammed Amin, the Director of Legal at the Ministry of Finance and the Deputy Commissioner in charge of Legal Affairs at the GRA.
“This is about the presidential directives dated 18 April 2024 on the recommendations of KPMG concerning the Contract for Consolidation of Revenue Assurance Services between the Government of Ghana acting per the Ministry of Finance, Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).
“Following the directives of the President, GRA has undertaken a thorough review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated 3 October 2019, the Measurement Audit for Downstream Petroleum Products Contract dated 3 October 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated 25 October 2023,” the GRA letter read.
“Based on the review, the following actions are to be taken: First, The Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit for Downstream Petroleum Products Contract will be amended.
“Specifically, the fee structure will be revised to a fixed fee structure. In addition, other provisions such as service delivery expectations, termination, and intellectual property rights will be subjected to a thorough review.
“Thirdly, the Upstream Petroleum and Minerals Revenue Audit portions of the Contract for Consolidation of Revenue Assurance Services cannot take effect until a comprehensive technical needs assessment, value-for-money assessment, and relevant stakeholder consultations have been achieved,” the GRA letter to SML further read.
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