A US-based Ghanaian lawyer and scholar, Prof Stephen Kwaku Asare, widely known as Kwaku Azar, has criticised President Nana Addo Dankwa Akufo-Addo for his failure to release the KPMG report on the Ghana Revenue Authority’s revenue assurance contract with Strategic Mobilisation Limited (SML).

In a post shared on Facebook on May 9, 2024, Kwaku Azar made the point that audit reports are public records and must be released to the public.

He added that the KPMG report cannot be classified as privileged advice to the president, as argued by proponents of the government, including the Majority Leader, Alexander Kwamina Afenyo-Markin, and must be made public.

"An audit report is a public record, not privileged advice to the President. KPMG is a fact-finder, not a presidential advisor," he wrote.

The academic also refuted assertions that the KPMG report was merely an opinion to help the president ascertain whether the corruption allegations against the GRA/SML deal were true.

"He did not seek an opinion from KPMG. He asked KPMG to find facts. Facts are not advice or opinion. Facts are not subject to protection from the public!" he reiterated.

Background:

President Akufo-Addo, in a press statement released by the Communications Director at the Presidency, Eugene Arhin, instructed the GRA and the Ministry of Finance to renegotiate the SML contract.

The president emphasised that the renegotiation should be closely monitored and evaluated periodically to ensure it meets expectations.

"There is a clear need for the downstream petroleum audit services provided by SML. GRA and the State have benefited from these services since SML commenced providing them. There has been an increase in volumes of 1.7 billion litres and an increase in tax revenue to the State of GHS 2.45 billion. KPMG also observed that there were qualitative benefits, including 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters, and six levels of reconciliation done by SML.

"This minimises the occurrence of under-declarations. However, it is important to review the contract for downstream petroleum audit services, particularly the fee structure. Given the experience and proficiency of SML over the last four years of providing this service, the President has directed that the fee structure be changed from a variable to a fixed fee structure. Other provisions of the contract worth reviewing include clauses on intellectual property rights, termination, and service delivery expectations," he wrote.

The decision to renegotiate the contract follows the president's acceptance of the recommendation by KPMG after its audit of the deal.

The audit findings prompted the need for a review of the revenue assurance contract, highlighting areas where improvements are necessary to enhance its effectiveness.

On January 2, 2024, President Nana Akufo-Addo commissioned KPMG to investigate the contract between SML and GRA, prompted by an exposé by media outfit, The Fourth Estate.

President Nana Addo Dankwa Akufo-Addo has since received the KPMG audit report regarding the revenue mobilisation contract between GRA and SML.

The report was delivered to him on Wednesday, March 27, as announced in a Facebook post by Eugene Arhin, the Director of Communications at the Presidency, on Wednesday, April 3.

BAI/AE

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