Allow SML system to run until conclusion of audit – GRA to Akufo-Addo

The Ghana Revenue Authority (GRA) is appealing to President Nana Addo Dankwa Akufo-Addo to allow the installed system of Strategic Mobilisation Ghana Limited (SML), aimed at enhancing revenue assurance, to run until the conclusion of the investigation.

President Nana Addo Dankwa Akufo-Addo, on January 2, 2024, ordered the suspension of the SML and GRA contract and appointed the audit, tax, and advisory services firm, KPMG, to conduct an immediate audit of the transaction.

The GRA, in a letter to the President signed by its Commissioner-General, Rev. Dr. Ammishaddai Owusu-Amoah, stated that SML has raised concerns about the operational ramifications being affected due to the suspension, pleading with the President to allow the installed system to run.

“Having carefully reviewed the concern and based on our own understanding of the contracts and the deliverable, we are of the opinion that the system that has been installed to enhance revenue assurance, for control purposes, and also to aid with the ongoing investigation could with your kindest permission be allowed to run. The system will continue to record data real-time until your further directive after the conclusion of the investigation.”

GRA confirmed that the suspension will lead to revenue losses following the suspension, arguing that there has been a huge gap in the control system as well as an update of the Oil Marketing Companies (OMCs) accounts.

“We can confirm that the suspension to all intents and purposes will lead to revenue losses following the suspension. There has been a huge gap in the control system and also the update of the Oil Marketing Companies (OMCs) accounts. We, however, want to assure you that the contract remains suspended and no payment would be made on the contract until your directive,” the GRA said in its letter.

 

 

Background

The Fourth Estate released an investigative piece in December 2023 indicting SML, the GRA, and the Ministry of Finance. Fourth Estate accused GRA of awarding SML a 10-year contract that accrues SML $100 million annually. It also raised concerns about alleged underhand dealings.

SML, after the report was released, debunked claims of being awarded a 10-year contract duration, insisting that it has been given a 5-year contract instead.

The Ghana Revenue Authority, in a statement issued on Wednesday, December 20, 2023, affirmed that its board and management followed the right processes in procuring the services of SML.

SML, on January 3, 2024, welcomed a directive by President Nana Addo Dankwa Akufo-Addo, ordering it to suspend its ongoing revenue assurance operations and allow an audit to proceed into its contract with the Ghana Revenue Authority (GRA) and the Ministry of Finance.

The President gave the directive on January 2, 2024.

He also appointed the audit, tax, and advisory services firm, KPMG, to conduct an immediate audit of the transaction.

SML, in a statement, believed the outcome of the audit will help establish a clear and accurate picture of its operations.

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