Akufo-Addo suspends GRA/SML contract; orders KPMG probe

President Nana Akufo-Addo has suspended the contract between the Ghana Revenue Authority and Strategic Mobilisation Ghana Limited aimed at improving revenue assurance in the extractive sector.

He also directed renowned professional services firm KPMG to audit the controversial contract between the two parties.

This was contained in a press release issued by the Communications Directorate of the Presidency.

According to the press release, KMPG, which has up to two weeks to probe the contract and submit findings to the president, will investigate issues ranging from the purpose of the contract to the determination of value for money and financial arrangements under the contract.

The President directed the Ministry of Finance and the GRA to assist KPMG in the timely conduct of the audit and further directed them to suspend the performance of the contract, pending the submission of the audit findings.

Background

Following an investigative piece by the Fourth Estate news portal in December 2023, SML refuted reports that it had been granted a 10-year contract, stating that it had been granted a 5-year deal instead.

SML also refuted allegations that it deducts $100 million from its contract every year.

Also, in a statement released on Wednesday, December 20, 2023, the Ghana Revenue Authority stated that the proper procedures were followed by its board and management when engaging SML.

GRA argued that the five-year contract is approved under Section 40 of the Public Procurement Act, Act 663, 2003, and is based on performance.

However, the Fourth Estate maintained that SML was given a 10-year contract and received some $100 million every year.

Additionally, the Fourth Estate said that its investigations refuted the assertions made by SML Company that, but for their intervention, Ghana would have lost billions of Cedis in the downstream petroleum industry.

On December 23, 2023, Parliament’s Select Committee on Finance requested that all payments under the terms of the government’s contract with SML be suspended beginning in 2024 while Parliament reviews the agreement.