Akufo-Addo releases KPMG report into GRA-SML deal | Download Full Report|

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H.E. President Nana Addo Dankwa Akufo-Addo finally released the KPMG report into the GRA-SML deal on Wednesday, May 22, 2024.

According to the Executive Summary of the report, the details below were stated

The President of the Republic of Ghana, in a letter dated 29 December 2023, appointed KPMG to conduct an audit of the contracts and related transactions between Ghana Revenue Authority (“GRA”) and Strategic Mobilisation
Ghana Limited (“SML”). KPMG subsequently engaged the Office of the President (“OOP”) on 12th January 2024.

This follows a public discussion of the subject matter that the contracts may not have been in the interest of the State.

Our understanding is that the contracts were intended to enhance revenue assurance in the downstream and upstream petroleum sectors, as well as the minerals and metals resource value chain.

Objective

The overall objective of the engagement is for KPMG to review the work and activities of SML in relation to the contracts with GRA, and assess the propriety of procurement and contracting processes as well as the appropriateness of cost value analysis in the performance of the contracts.

Scope of work

1. Ascertain the rationale or needs assessment performed prior to the contract approval by GRA and assess how the arrangement aligns with specific needs

2. Assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML

3. Evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations

4. Evaluate the value or benefit that SML has so far offered to the GRA through this engagement.

5. Review the financial arrangements, including pricing structures, payment terms, and resolution of any financial compliance issues.

6. Submit a report on findings on the above together with appropriate recommendations.

Below is a summary of the approach adopted in executing this assignment: We

Engaged key stakeholders to understand the various contracts between
GRA and SML and the relevant services reportedly provided by SML.
Reviewed documents provided by SML and GRA and performed walkthrough tests to confirm our understanding of working arrangements and the respective responsibilities of the parties.
Evaluated the sourcing and contracting processes leading to the selection of SML, ascertaining alignment with applicable procurement laws and regulations.
Conducted background checks on both desktop and the Office of the Registrar of Companies (“ORC”) on SML, reviewing its business and operating model to assess its qualifications to deliver on the contracted services.
Analysed the costs expended and revenues accruing to GRA, to
determine the value or benefits derived from the engagement with SML.
Identified and discussed observations, gaps, and recommendations with
relevant stakeholders.