KPMG audit: SML received GH¢720 million from ESLA's GH¢2.45 billion revenue

Further details from the audit by KPMG has revealed that Strategic Mobilisation Ghana Ltd (SML) received GH¢720 million from the GH¢2.45 billion generated through the Energy Sector Levy Act (ESLA).

Per the report, this payment was part of a revenue mobilization agreement with the Ghana Revenue Authority (GRA) and covered the period from May 1, 2020, to December 31, 2023.

During this time, the revenue equated to 1.70 billion liters of fuel, averaging 38.6 million liters monthly.

The audit documents presented to KPMG showed that the GRA and SML claimed the contract's initiation resulted in an increase in volume liftings and tax revenue, totaling GH¢12.98 billion over the same period.

According to the report, the analysis, considering the ESLA liftings before SML's involvement, attributed an incremental volume of 1.70 billion liters to SML's activities, averaging 38.6 million liters each month.

“Based on analysis using ESLA reported liftings as the pre-SML, the incremental reported volume that is attributable to the involvement of SML is determined as 1.70 billion litres for the period. This works out to a monthly average of 38.6 million litres per month,” part of the report read.

Furthermore, the incremental tax revenue linked to SML's involvement was GH¢2.45 billion for the period. Out of this, SML's fee of GH¢720 million represented 29.41% of the additional tax revenue collected.

“The incremental revenue that is attributable to the involvement of SML is GH¢2.45 billion for the period. The fee of GH¢720 million paid to SML for the same period constitutes 29.41% of the incremental tax revenue,” the report said.

ID/MA