Inquiring into the revenue assurance contract between Strategic Mobilization Ghana Limited (SML) and the Ghana Revenue Authority (GRA), the Media Foundation for West Africa (MFWA) has requested that the complete report of KPMG’s audit presented to the President, be made public.
The Media Foundation for West Africa (MFWA) filed a Right to Information (RTI) request to the Presidency demanding the full report of KPMG’s audit into the revenue assurance contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA). This request comes in the wake of various developments surrounding the contract and its audit findings.
“This request is made by my rights as outlined in Article 21(1)(f) of the 1992 Constitution of Ghana and Section 18 of the Right to Information Act, 2019 (Act 989).” [The request is specifically for] a copy of the full KPMG Audit Report on the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) as commissioned by His Excellency the President and which report formed the basis of the recent directives by the President on the said contract.”
Sulemana Braimah, MFWA’s Executive Director
KPMG was commissioned to investigate the contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA), which had been in question due to allegations of impropriety and the lack of parliamentary approval for the contracts signed in 2018, 2019, and 2023, as required by the Public Financial Management Act 2016, Act 921.
As contained in a statement released by the office of the President, the KPMG audit report revealed significant findings, including an increase in state tax revenue to GHS 2.45 billion and the implementation of 24/7 electronic real-time monitoring of petroleum products outflows, among other qualitative benefits.
However, the report according to the statement also recommended a review of the contract, particularly focusing on the fee structure and other provisions to ensure fairness and efficiency.
The Fourth Estate revealed that SML had made false claims about saving Ghana over GHc3 billion in revenue that would have been lost to the state but for its services. This claim was found to be completely false, with SML’s Managing Director, Christian Tetteh Sottie, admitting he did not know about the figure when confronted with counter-evidence.
Ensuring Transparency and Accountability,
President Akufo-Addo directed KPMG to audit the GRA/SML deal in January 2024, following The Fourth Estate’s exposé on the questionable revenue assurance contract. This decision came after the exposé highlighted concerns about the contract, leading to a call for transparency and accountability in the management of public funds.
In response to the KPMG audit findings, a statement released by the Director of Communications at the Presidency, Eugene Arhin… on the president’s decision directed the GRA and the Ministry of Finance to renegotiate the contract with SML. This included changing the fee structure from variable to fixed and reviewing clauses on intellectual property rights, termination, and service delivery expectations.
SML expressed its commitment to adhering to ethically acceptable standards and maintaining the quality of its work. The company has clarified that the audit conducted by KPMG revealed that it had not received a speculated $100 million payment, refuting claims circulated in the media. SML has also highlighted its commitment to following due process in the review process initiated by the GRA and the Ministry of Finance.
The MFWA’s request for the publication of the full KPMG audit report is part of a broader context of scrutiny and review of the revenue assurance contract between SML and GRA, following the audit’s findings and the President’s directives for contract review.
These steps collectively aim to address the concerns raised by The Fourth Estate and the public, ensuring that the revenue assurance contract between SML and GRA is transparent, accountable, and effective in achieving its objectives.
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