{"id":71735,"date":"2024-04-24T18:03:23","date_gmt":"2024-04-24T18:03:23","guid":{"rendered":"https:\/\/www.africa-press.net\/ghana\/?p=71735"},"modified":"2024-04-24T17:42:26","modified_gmt":"2024-04-24T17:42:26","slug":"full-text-akufo-addos-statement-on-kpmg-report-on-gra-sml-deal","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/ghana\/all-news\/full-text-akufo-addos-statement-on-kpmg-report-on-gra-sml-deal","title":{"rendered":"Full text: Akufo-Addo\u2019s statement on KPMG report on GRA-SML deal"},"content":{"rendered":"

Africa-Press – Ghana. <\/strong><\/span>President Nana Addo Dankwa Akufo-Addo has acted on the report presented to him by accounting and auditing firm, KPMG on the agreement between the Ghana Revenue Authority (GRA) and the Strategic Mobilization Limited (SML).<\/b><\/p>\n

The President has made a number of directives upon reviewing the report.<\/p>\n

A statement issued by the Presidency on Wednesday, April 24 highlighted the directives saying \u201cThe 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. However, given that the upstream petroleum audit and minerals audit services could prevent significant revenue leakages, the President has directed that the Ministry and GRA conduct a comprehensive technical needs assessment, value-formoney assessment, and stakeholder engagements before implementing such services.<\/p>\n

\u201cThe transaction audit and external price verification services may also be terminated.<\/p>\n

According to KPMG\u2019s findings, GRA obtained partial value or benefit for those services.<\/p>\n

This was also due to a lack of monitoring on the part of GRA to ensure that SML performed the services as stipulated in the contracts. KPMG\u2019s investigation found that GRA has introduced external price verification tools as part of ICUMS, among its other functions. This renders the reliance on SML for external price verification redundant.<\/p>\n

\u201cThere is a clear need for the downstream petroleum audit services provided by SML. GRA and the State have benefited from these services since SML commenced providing them.<\/p>\n

There has been an increase in volumes of 1.7 billion litres 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.<\/p>\n

\u201cThis minimises the occurrence of under-declarations. However, it is important to review 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. SML\u2019s 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.\u201d<\/p>\n\r\n