President Nana Addo Dankwa Akufo-Addo has ordered the termination of the upstream petroleum and minerals audit service provided to the Ghana Revenue Authority (GRA) by Strategic Mobilization Ghana Limited (SML), as suggested by the KPMG.
In a 5-page press release in the early hours of Wednesday, April 24, Akufo-Addo directed the ministry and GRA to take certain measures before having to implement the service.
“…The President directs the ministry and GRA to conduct a comprehensive technical need assessment, value for money, and stakeholders engagement before implementing such services.”
The president noted that the state and the GRA have benefited ever since SML started providing services to the country, as reported by KPMG.
“There has been an increase in volumes of 1.7 billion liters and an increase in tax revenue to the State of GHS 2.45 billion. KPMG also observed that there were qualitative benefits, including a 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters and six levels of reconciliation done by SML.”
He also added that there should be a comprehensive;
“review of the contract for downstream petroleum audit services, particularly the fee structure. Given the experience and proficiency of SML over the last four years of providing this service, the President has directed that the fee structure be changed from a variable to a fixed fee structure. Other provisions of the contract worth reviewing include clauses on intellectual property rights, termination, and service delivery expectations.”
In the five-page press release, the president also directed that SML’s performance be evaluated accordingly to ensure expectations in any negotiable contract in the future.
“SML’s performance in any renegotiated contracts should be monitored and evaluated periodically to ensure that it meets expectations. Any renegotiated contract should be compliant with section 33 of the PFMA.”
This development was preceded by a report by the Fourth Estate, which alleged some irregularities in a multi-million dollar contract awarded to SML by the Ghana Revenue Authority (GRA).
SML on its part responded to the allegations in a legal action, suing the Fourth Estate for defamation.
Following concerns raised regarding the contract between the GRA and SML, President Akufo-Addo directed KPMG to conduct an audit into the matter.
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Story by: Joseph Henry Mensah | univers.ug.edu.gh
