SML contract suspended, KPMG tasked to audit

FOLLOWING the rumpus over the operations of the Strategic Mobilization Ghana Ltd (SML) triggered by the Fourth Estate’s investigations, President Nana Akufo Addo, has suspended the contract signed between the Ghana Revenue Authority (GRA) and SML, pending investigations into same.

The President has subsequently appointed audit, tax and advisory services firm KPMG to conduct an immediate audit into the contract.
The contract between the two was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.

A statement issued by the Presidency and signed by the Director of Communications, Mr Eugene Arhin laid out the terms of reference of the audit to include an
i. audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA, and assess how the arrangement aligns with specific needs
ii. assessment of the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML;

iii. evaluation of the degree of alignment between current activities and the stipulated contract scope, identifying any deviations;

iv. evaluation of the value or benefit that SML has so far offered to the GRA through this engagement,

v. review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues; and

KPMG will within two weeks submit a report on its findings , together with appropriate recommendations.
President Akufo Addo directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit, and has also directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.