Akufo-Addo to authorise release of KPMG report - Jubilee House source

President Nana Addo Dankwa Akufo-Addo is reportedly set to release the full KPMG report on the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).

It can be recalled that President Akufo-Addo ordered an investigation into the GRA/SML deal, by KPMG, after allegations of corruption were made regarding the deal.

KPMG presented its report to the president in April 2024, but only sections of the report, including the recommendations, were released to the public, which led to a lot of criticisms, with many accusing the president of protecting certain individuals in his government.

The Office of the President is also reported to have rejected a Right to Information request for the report's release.

However, according to information obtained by asaaseradio.com, a senior source close to the presidency has indicated that Akufo-Addo is most likely to exercise his discretionary power and authorise the release of the KPMG report.

The source is reported to have said that the release of the report is a "mere question of timing" and that the president is happy to authorise the release of the report because there is nothing to hide.

The source also stated that the statement issued by the presidency on the KPMG report essentially covers the substance of the KPMG report.

"I can say with authority that both the letter to GRA and the press release from the presidency on the KPMG report on the GRA-SML deal captured, without omission, the substance and essence of all the material findings. It is important to add that the president did not give his recommendations to GRA but the totality, without reservation, of all the recommendations by KPMG.

"President Akufo-Addo very simply passed on all that KPMG recommended should be done about the SML contracts, including cancelling two of them, suspending two others, and renegotiating the variable fee of the one that was recommended to remain but altered to have a fixed fee," the Asaase News source at the presidency is quoted as having said.

Background:

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

The president emphasised 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 litres 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 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," 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 mobilisation 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.

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