Akufo-Addo grants KPMG’s audit extension request in SML matter
President Nana Addo Dankwa Akufo-Addo has extended the period within which KPMG is to complete its audit on the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).
The internationally acclaimed Audit, Tax and Advisory Services firm, has been given up to Friday, February 23, to complete its work, instead of the initial date of Tuesday, January 16, 2024.
A statement issued by the Communications Directorate, Office of the President, explained that the development follows a request made by the KPMG, seeking an extension of the two-week period originally given it to undertake the assignment.
Following some public criticism regarding the contract, which the two entities entered into in 2020, the President asked KPMG to conduct an audit into the transactions.
The contract is meant to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and the minerals and metals resources value chain.
The agreement has recently generated a lot of public criticism, particularly over alleged duplication of work and the claim of saving the country more than GHS 3 million in revenue, which would have been lost to the State last year (2023).
Consequently, the President tasked KPMG to conduct an audit to ascertain the rationale or needs assessment performed before the contract approval by GRA and assess how the arrangement aligns with specific needs.
The audit firm is also to assess the appropriateness of the contracting methodology.
It has been mandated to verify compliance with legal standards and industry best practices in the procurement process for the selection of SML, and evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations.
The statement said the President Akufo-Addo had also taken note of the request made by the GRA, asking for his permission to allow the monitoring system installed and used by SML to continue, notwithstanding the suspension of its related operations.
“The President has denied GRA’s request, and has directed that the status quo, with respect to the suspension of the performance of the contract, should remain in effect until the completion of the audit and, subsequent, submission of the audit report by KPMG,” it stated.
Per its terms of reference, the KPMG is to evaluate the value or benefit that SML has so far offered to the GRA through the engagement.
It has been directed, among others, to review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues and submit a report on its findings, together with appropriate recommendations.
The President has also directed the Ministry of Finance and GRA to provide KPMG with whatever assistance it will require for conduct of the audit.
Meanwhile, the Ministry of Finance and the Ghana Revenue Authority have been ordered to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.
Source: GNA