The Ghana Revenue Authority (GRA) has terminated the Audit and External Verification Service Contract (AEVS) with Strategic Mobilisation Ghana Limited (SML), following a directive from President Akufo-Addo based on recommendations by audit firm, KPMG.
Advertisement
In a letter titled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated Friday, 3 May 2024, the management announced the cancellation of the Upstream Petroleum and Minerals Revenue Audit portions of the contract, pending further review.
Additionally, GRA disclosed its decision to amend the Measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee arrangement.
The Authority intends to conduct a thorough review of other contract provisions such as service delivery expectations, termination clauses, and intellectual property rights.
The letter, signed by GRA’s Commissioner General, Ms Julie Essiam, and addressed to the Managing Director of Strategic Mobilization Ghana Limited (SML), stated:
“This is about the presidential directives dated 18 April 2024 on the recommendations of KPMG concerning the Contract for Consolidation of Revenue Assurance Services between the Government of Ghana acting per the Ministry of Finance, Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).
Advertisement
“Following the directives of the President, GRA has undertaken a thorough review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated 3 October 2019, the Measurement Audit for Downstream Petroleum Products Contract dated 3 October 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated 25 October 2023.
“Based on the review, the following actions are to be taken: First, The Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit for Downstream Petroleum Products Contract will be amended.
“Specifically, the fee structure will be revised to a fixed fee structure. In addition, other provisions such as service delivery expectations, termination, and intellectual property rights will be subjected to a thorough review.
“Thirdly, the Upstream Petroleum and Minerals Revenue Audit portions of the Contract for Consolidation of Revenue Assurance Services cannot take effect until a comprehensive technical needs assessment, value-for-money assessment, and relevant stakeholder consultations have been achieved.”
Copies of the letter have been sent to the Vice President, Dr Mahamudu Bawumia, the Chief of Staff, Akosua Frema Osei Opare, Secretary to the President, Nana Bediatuo Asante, the Finance Minister, Mohammed Amin, the Director of Legal at the Ministry of Finance and the Deputy Commissioner in Charge of Legal Affairs at the GRA.
Leave a Reply