Akufo-Addo unveils KPMG report: SML's GH¢ 31.88 Million tax debt exposed

President Nana Addo Dankwa Akufo-Addo has disclosed a comprehensive KPMG report which reveals that Strategic Mobilisation Ghana Limited (SML) owes the Ghana Revenue Authority (GRA) a significant sum of GH¢31.88 million in unpaid taxes, including GH¢18.50 million in accrued interest as of January 31, 2024.

As reported by myjoyonline.com, the report indicates that SML did not comply with tax regulations by failing to file returns or pay taxes from June 2020 to August 2023.

The audit firm has notified the GRA of the non-compliance, leading to a formal demand for payment from SML.

Despite these actions, SML's tax obligations remain unsettled.

"Additionally, SML failed to fulfill its statutory obligations by neither filing returns nor remitting these taxes to GRA. Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GH¢18.50 million owed by SML to GRA as of January 31, 2024. Consequently, the total liability incurred by SML amounts to GH¢31.88 million.

"At the time of our review, we noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding a settlement of the outstanding amount," an excerpt of the report read.

The report comes in the wake of an investigation by The Fourth Estate, which exposed irregularities in SML's contracts with the Ministry of Finance and the GRA, particularly in claims about services provided to the downstream petroleum sector.

These services, claimed by SML, were found to be performed by other entities, leading to an apology and the removal of false claims from SML's website by its Managing Director, Christian Tetteh Sottie.

Despite this, the then Minister of Finance, Ken Ofori-Atta, sought to expand SML's contracts to include the gold and oil-producing sectors.

This decision, made in 2023, increased the annual contract sum to over $100 million.

In response to the investigation and public concerns, President Akufo-Addo suspended SML's expanded contracts, which had grown to over $100 million annually, and ordered an audit by KPMG.

The full report sheds further light on the extent of SML's discrepancies and its financial dealings with government agencies.

ID/ ADG

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