Ghana Revenue Authority Cancels 2 Shady SML Contracts After KPMG Audit, Directs Suspension Of Other

• The Ghana Revenue Authority has terminated two shady contracts after a recent controversy
• The two contracts are with Strategic Mobilization Ghana Limited (SML), which has been implicated in alleged corruption
• President Akufo-Addo commissioned KPMG to investigate the contract following an exposé by the Fourth Estate

The Ghana Revenue Authority has terminated two contracts with Strategic Mobilization Ghana Limited (SML) after recent directives by the president.

The contracts cancelled are the Audit and External Verification Service Contract (AEVS) with SML.

Despite procurement concerns, there was no indication that the overall contract would be cancelled.

The GRA has further directed the suspension of the Upstream Petroleum and Minerals Revenue Audit portions of the contract.

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It has also decided to amend the measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed one.

According to a letter following an audit of the deal, the authority has pledged to review other provisions thoroughly.

In January, President Akufo-Addo commissioned KPMG to investigate the contract following an exposé by the Fourth Estate, which questioned the impact of SML in the downstream petroleum sector despite being awarded a 10-year $100 million contract.

The audit findings prompted the need to review the revenue assurance contract, highlighting areas where improvements are necessary to enhance its effectiveness.

The presidency noted a need for downstream petroleum audit services provided by SML.

It also said there has been an increase in volumes of 1.7 billion litres and tax revenue to the state.

However, it also noted the need to review the contract and said the president wanted the fee structure changed from a variable to a fixed one.

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Akufo-Addo has endorsed the recommendation to discontinue the upstream petroleum and minerals audit services.

These services had not yet commenced, and SML had not paid.

Background to the scandal

After the Fourth Estate investigation questioned the impact of SML, it admitted that it was not performing the advertised services that claimed to tackle under-reporting, diversion and dilution.

The investigation also questioned malfeasance in the procurement process to award SML the contract.

The company has disputed the findings, saying it was given a five-year contract instead.

SML debunked claims of being awarded a 10-year contract duration, insisting that it was given a 5-year contract instead.

SML further dispelled claims that it takes $100 million annually from its contract.

Mahama promises to scrap shady SML contract

YEN.com.gh reported that National Democratic Congress flagbearer John Mahama has pledged to cancel the controversial SML contract at the Ghana Revenue Authority.

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Mahama described the deal as corrupt and said it would not have a place under his government.

The shady SML contract is under scrutiny after an investigative report by The Fourth Estate.

Source: YEN.com.gh