GRA terminates two contracts with SML, suspends certain portions of deal

The revenue arm of the government, GRA, has terminated two contract transactions with Strategic Mobilisation Ghana Limited (SML) and subsequently suspended certain portions of the contract agreement.

According to a report from myjoyonline.com, the terminated contracts include the Audit and External Verification Service Contract (AEVS). At the same time, the Upstream Petroleum and Minerals Revenue Audit has been suspended pending further review.

The termination follows a directive by the President after the audit firm KPMG made some recommendations on the deal.

The report cited a letter signed by the GRA Commissioner-General Julie Essiam and titled, “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated May 3, 2024, stating that the GRA has decided to also review the Measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee structure.

The Authority says it will conduct a thorough review of other provisions of the contract, including service delivery expectations, termination, and intellectual property rights.

“This is about the presidential directives dated April 18, 2024, on the recommendations of KPMG concerning the Contract for Consolidation of Revenue Assurance Services between the Government of Ghana, acting through the Ministry of Finance, Ghana Revenue Authority (GRA), and Strategic Mobilisation Ghana Limited (SML).

“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 October 3, 2019, the Measurement Audit for Downstream Petroleum Products Contract dated October 3, 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated October 25, 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,” the GRA letter signed by its Commissioner General, Ms. Julie Essiam, and addressed to the Managing Director of Strategic Mobilization Ghana Limited (SML) read.

Copies of the letter issued by the GRA have been sent to key government officials, including the Vice President, Dr. Mahamudu Bawumia; the Chief of Staff, Akosua Frema Osei Opare; the 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.

MA/ADG

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