Before implementing the upstream petroleum and minerals audit service with Strategic Mobilization Ghana Limited (SML), President Akufo-Addo has directed the Ministry of Finance and the Ghana Revenue Authority (GRA) to conduct a “comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements ”.
A statement from the presidency on Wednesday, April 24, 2024 regarding the KPMG report stated that the assessment will decide whether or not to cancel the contract based on its profitability to the state.
The Government, operating through MoF and GRA, may cancel the contract with or without cause by providing 120 days’ written notice prior to the termination notice’s effective date, as per the statement made by KPMG’s recommendation. Regardless of the reason for termination, the Government will not be entitled to a refund of any money previously paid to SML, and it may be required to reimburse SML for services rendered but not yet paid for.
The President responded, saying, “The upstream petroleum audit and minerals audit services may be terminated as they have not yet begun and no payments have been made in relation to those services.” However, before implementing such services, the President has directed that the Ministry and GRA conduct a thorough technical needs assessment, value-for-money assessment, and stakeholder engagements. This is because the upstream petroleum audit and minerals audit services have the potential to prevent significant revenue leakages.
A Fourth Estate article claimed anomalies in a multimillion-dollar contract that the Ghana Revenue Authority (GRA) gave to SML. In spite of the accusations, the SML and the GRA both angrily denied any misconduct.
SML has filed a lawsuit against the Fourth Estate, claiming defamation, in reaction to the allegations. President Akufo-Addo ordered KPMG to carry out an audit into the GRA-SML contract in response to concerns expressed about it.
He received the report on the audit from KPMG on March 27. There have been requests for the President to provide the audit’s results so that Ghanaians can determine whether their taxes are being used for worthwhile purposes.
In response to the calls, the President released a statement outlining the report’s conclusions and suggestions and included his instructions to the Finance Ministry and the GRA on the deal.
