Akufo-Addo to order release of KPMG report

Media outlet Asaase Radio quotes a source close to the President’s office as confirming that President Akufo-Addo will authorize the release of the KPMG audit report on the controversial Ghana Revenue Authority (GRA) and Strategic Mobilization Limited contract ( SML). .

Chief Director of the Office of the President, HM Wood, on Wednesday, May 8, 2024, rejected a demand by the Media Foundation for West Africa (MFWA) to obtain KPMG’s full report on the revenue guarantee contract between GRA and SML .

In April this year, the MFWA requested a copy of KPMG’s full audit report on the GRA/SML income assurance contract, using the Right to Information Act, 2019 (Act 989), also called the RTI Act.

However, in a statement on Wednesday (May 8), the chief director of the Office of the President said: “After careful consideration and in accordance with section 5 (1) (a) and (b) (i) of RTI Act, I regret to inform you that your application has been rejected.”

“Section 5 (1) (a) and (b) (i) provides that information prepared or presented 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 in decision-making reserved for the highest officials in the country,” the statement added.

However, Asaase News says its sources at Jubilee House indicate that the president will authorize the release of the report because there is nothing to hide.

“I can say with authority that both the letter to GRA and the presidency’s press release 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 did not give his recommendations to the GRA, but rather the entirety, without reservation, of all KPMG recommendations.

“President Akufo-Addo simply conveyed everything that KPMG recommended be done with respect to the SML contracts, including the cancellation of two of them, the suspension of two others and the renegotiation of the variable tariff of the one that was recommended to be maintained but it was modified to have a fixed rate. ”said the Asaase News source in the presidency.

The source further estimated that “the report has not yet been made public because there is a feeling that GRA should be allowed to recommend without any undue pressure the actual substance of the recommendations.”

Asaase said that when he contacted a high-level source in the Ministry of Finance, the response was emphatic that GRA could even go beyond what was recommended and that after carrying out the needs assessment and full consultations with the parties interested parties regarding the two pending contracts regarding mining production monitoring and upstream oil and gas production, GRA, if it wants to move forward, will open the two contracts to competitive bidding.

GRA-SML investigations

President Akufo-Addo received the KPMG report on April 2, 2024, three months after commissioning the audit firm to investigate the GRA-SML deal. After reviewing the report, the government issued a press release ordering the GRA to review the agreement, among other directives.

On January 2, 2024, President Akufo-Addo appointed and commissioned 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 that was entered into to improve revenue assurance in the downstream oil sector, upstream oil production and the mineral and metal resources value chain.

The president’s directive was contained in a statement issued by the Jubilee House communications directorate and signed by presidential communications director Eugene Arhin. The terms of reference of the audit ordered by the president were six.

First, KPMG must conduct an audit to determine the rationale or needs assessment conducted prior to GRA’s approval of the contract, and assess how the agreement aligns with specific needs, and second, assess suitability. of the contracting methodology, verifying compliance with legal regulations. and industry best practices in the procurement process for SML selection.

Third, evaluate the degree of alignment between current activities and the scope of the stipulated contract, identifying any deviations and, fourth, evaluate the value or benefit that SML has so far offered to the GRA through this engagement.

The fifth is to review financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues; and finally, present a report on its conclusions on the above, together with appropriate recommendations.

GRA-SML contract review

The Ghana Revenue Authority (GRA), in line with recent directives given by President Akufo-Addo on its agreement with Strategic Mobilization Ghana Limited (SML), has terminated the External Audit and Verification Service (AEVS) Contract transaction. with SML.

GRA has also decided to modify the metering audit for the 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 revealed this in a letter titled “Compliance with Presidential Directives on the Recommendations of the KPMG Report on Transactions between GRA and SML”, dated Friday, May 3, 2024, signed by its Commissioner General, Ms. Julie Essiam, and addressed to the Director General. of Strategic Mobilization Ghana Limited (SML)

The GRA letter is copied by the Vice President, Dr. Mahamudu Bawumia, the Chief of Staff, Mars Akosua Frema Osei Opare, the Secretary to the President, Nana Bediatuo Asante, the Minister of Finance, Mohammed Amin, the Director of Legal Affairs in the Ministry of Finance. and the Deputy Commissioner in charge of Legal Affairs of the GRA.

“This is the Presidential Directives of 18 April 2024 on the recommendations of KPMG relating to the Contract for the Consolidation of Revenue Assurance Services between the Government of Ghana acting under the Ministry of Finance, the Ghana Revenue Authority (GRA ) and Strategic Mobilization Ghana Limited (SML). ).

“Following the President’s directives, GRA has conducted a comprehensive review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated October 3, 2019, the Downstream Petroleum Products Measurement Audit Contract of dated October 3, 2019, and the Revenue Assurance Services Consolidation Contract Agreement (Mineral and Upstream Audit) dated October 25, 2023,” the GRA letter said.

“Based on the review, the following actions will be taken: First, the Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit Contract of the Downstream Petroleum Products Contract will be modified.

“Specifically, the fee structure will be revised to a fixed fee structure. Additionally, other provisions, such as service delivery expectations, termination, and intellectual property rights, will be subject to extensive review.

“Third, the Petroleum and Mineral Revenue Audit portions of the Contract for the Consolidation of Revenue Assurance Services cannot come into effect until a comprehensive assessment of the technical needs, an assessment of the relationship value for money and consultations with relevant stakeholders,” GRA’s letter to SML read more.

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