The full KPMG report released by President Nana Addo Dankwa Akufo-Addo has unveiled a significant discrepancy in the financial dealings between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML).
According to the report, the GRA disbursed a total of GH¢1,400,202,403.56 to SML between 2018 and 2023 for its contractual services. This figure starkly contrasts with the GH¢1,061,054,778.00 previously announced by the Communications Director of the Presidency, Eugene Arhin, on April 24.
Meanwhile, the payments to SML, which covered three out of six service contracts, were executed without the requisite approval from the Public Procurement Authority (PPA). These findings, detailed on page 31 of the comprehensive KPMG report, have raised concerns about the transparency and governance of these contractual agreements.
The revelation of the disbursement figure comes in the wake of an investigation by The Fourth Estate, which uncovered multiple irregularities in the contracts between SML, the Ministry of Finance, and the GRA.
This prompted President Akufo-Addo to commission KPMG to conduct a comprehensive audit. The investigation highlighted discrepancies in SML’s claims about its services, particularly those aimed at mitigating revenue losses in the downstream petroleum sector.
Disputed Service Claims and Admissions of Inaccuracy
SML had asserted that its services were crucial in addressing issues such as under-declaration, dilution, and diversion of petroleum products. However, evidence from The Fourth Estate indicated that these functions were already being performed by other companies and the National Petroleum Authority (NPA). In light of these findings, Christian Tetteh Sottie, Managing Director of SML, admitted to inaccuracies and promptly removed the misleading claims from the company’s website.
Despite the controversies and falsehoods admitted by SML, Finance Minister Ken Ofori-Atta initiated a process in 2023 to expand SML’s contracts to include services in the gold and oil-producing sectors. This expansion significantly increased the annual contract sum to over $100 million, further intensifying scrutiny of SML’s operations and financial arrangements.
Presidential Response and Suspension of Contracts
Following the investigative reports and subsequent public outcry, President Akufo-Addo took decisive action by suspending SML’s contracts. He also commissioned KPMG to conduct an in-depth audit and provide a detailed report.
While the president issued a press statement summarizing the findings, the full KPMG report presents even more damning revelations about SML’s operations within its contracts with the Ministry of Finance and the GRA.
The KPMG report’s findings have significant implications for governance and accountability in Ghana’s public sector. The discrepancy between the actual disbursed amount and the previously stated figure raises serious questions about transparency and oversight. The unapproved contracts underscore the need for stringent adherence to procurement regulations to prevent such irregularities in the future.
Moving forward, it is imperative for the government to address these issues comprehensively. Strengthening procurement processes, enhancing transparency in public financial management, and ensuring rigorous oversight mechanisms are essential steps to restore public trust. The revelations also highlight the importance of independent audits and investigative journalism in holding public institutions accountable and promoting good governance.
The KPMG report serves as a critical reminder of the need for transparency, accountability, and adherence to legal protocols in public sector contracts.
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