KPMG, one of the global Audit, Tax, and Advisory services firms was recently tasked by Ghana’s President, Nana Akufo-Addo, to audit the contract entered into by the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML) to enhance revenue assurance in the extractive sector, will evaluate and decide whether to undertake the exercise or not.
A source in the accountancy practice industry and knowledgeable about the operations of international accounting firms told energynewsafrica.com that such firm performs evaluation and acceptance procedures prior to formally accepting any offer or appointment. The evaluation includes conflict of interest matters, technical competence, profile of the assignment and timeframe to perform the assignment.
Our source believes KPMG will evaluate the appointment by the President in a similar way as they do for all assignments.
The SML’s contract with GRA has generated public discussion on traditional media and social media following an investigative piece by The Fourth Estate, which alleged some wrongdoings in the contract terms and execution.
Among other things, the report by The Fourth Estate also discounted claims by SML Ghana in 2021 that it had saved Ghana over GH₵1 billion in revenue because of its services.
This prompted the Presidency to act on the issue.
In a statement issued in Accra and signed by the Director of Communication at the Presidency, Mr. Eugene Arhin said the terms of reference for KPMG in the conduct of its audit was to ascertain the rationale and needs assessment performed before the contract approval by GRA.
It was also to assess how the arrangement aligned with specific needs, assess the appropriateness of the contracting methodology, and verify compliance with legal standards and industry best practices in the procurement process for the selection of SML.
Additionally, it is to evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations, evaluate the value or benefit that SML had so far offered to the GRA through the engagement, as well as review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues.
The Presidency charged the firm to submit a report on its findings on the above, together with appropriate recommendations to the President within two weeks.
The statement said President Akufo-Addo had directed the Ministry of Finance and the GRA to provide KPMG with whatever assistance it would require for the conduct of the audit, stressing that “He (the President) has also directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report.”
Great
Source: https://energynewsafrica.com
