Josiah
President Akufo-Addo has endorsed KPMG’s recommendation to halt Strategic Mobilization Ghana Limited (SML) from furnishing the Ghana Revenue Authority (GRA) with upstream petroleum and minerals audit services.
In a five-page press release issued on Wednesday, April 24, the President conveyed, “The upstream petroleum audit and minerals audit services have not yet been commenced, and no payments have been made in respect of those services; therefore, they may be terminated.”
Nonetheless, recognizing the potential of upstream petroleum and minerals audit services to curb significant revenue leakages, the President directed the Ministry and GRA to conduct a comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements before implementing such services.
Likewise, the transaction audit and external price verification services are slated for termination. KPMG’s investigation revealed that GRA received only a portion of the value or benefit for such services due to its failure to oversee SML’s performance as specified in the contracts.
Regarding downstream petroleum audit services, President Akufo-Addo underscored their necessity, citing significant revenue increases and qualitative benefits observed since SML began providing them. However, he recommended revising the contract’s fee structure from variable to fixed and reviewing clauses on intellectual property rights, termination, and service delivery expectations.
To ensure SML’s continued performance, the President advocated for regular performance reviews and adherence to the Public Financial Management Act (PFMA) in any renegotiated agreements.
The Ministry of Finance and the Ghana Revenue Authority are instructed to implement the President’s directives promptly and provide the Office of the President with progress updates.
