Akufo-Addo's handling of GRA/SML deal an indication of transparency and good governance - Afenyo-Markin

The Majority Caucus of Parliament has praised President Nana Addo Dankwa Akufo-Addo for his handling of the controversy surrounding the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).

Speaking to journalists in Parliament on Thursday, May 3, 2024, Majority Leader Alexander Kwamina Afenyo-Markin indicated that actions taken by President Akufo-Addo since allegations of corruption were made regarding the deal are a sign of accountability, as reported by 3news.com.

He indicated that the investigation into the SML contract by KPMG, which President Akufo-Addo ordered, showed that no wrongdoing had been committed.

The majority leader, who is the Member of Parliament for Effutu, said that the opposition National Democratic Congress (NDC) and civil society organizations, who are calling for the abrogation of the SML contract, are only endangering the existence of a Ghanaian business.

"Often times, under the guise of due diligence, under the guise of transparency, we often get out of control and destroy Ghanaian businesses, whereas foreign firms who operate in certain sectors get the kind of protection that allows them to develop their businesses," he said.

On calls for the KPMG report on the SML deal to be released, the MP said, "Much as it is written in law that public documents for the sake of transparency and good governance be released to the public and members of the public have the right to receive it, it is also a written bonafide of the president."

Background:

President Akufo-Addo, in a press statement released by the Communications Director of the Presidency, Eugene Arhin, instructed the GRA and the Ministry of Finance to renegotiate the SML contract.

The president emphasized that the renegotiation should be closely monitored and evaluated periodically to ensure it meets expectations.

"There 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. There has been an increase in volumes of 1.7 billion liters and an increase in tax revenue to the State of GHS 2.45 billion. KPMG also observed that there were qualitative benefits, including 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.

"This minimizes 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," he wrote.

The decision to renegotiate the contract follows the president's acceptance of the recommendation by KPMG after its audit of the deal.

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

On January 2, 2024, President Nana Akufo-Addo commissioned KPMG to investigate the contract between SML and GRA, prompted by an exposé by media outfit, the Fourth Estate.

President Nana Addo Dankwa Akufo-Addo has since received the KPMG audit report regarding the revenue mobilization contract between GRA and SML.

The report was delivered to him on Wednesday, March 27, as announced in a Facebook post by Eugene Arhin, the Director of Communications at the Presidency, on Wednesday, April 3.

BAI/NOQ

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