Business News of Thursday, 23 May 2024

Source: www.ghanaweb.com

SML received GH¢1.4 billion instead of GH¢1 billion as declared by Akufo-Addo - KPMG report

Christian Tetteh Sottie, Managing Director of SML Ghana Christian Tetteh Sottie, Managing Director of SML Ghana

An audit report compiled by KPMG on the transaction agreement for revenue assurance services between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has revealed that the revenue agency disbursed a total of GH¢1,400,202,403.56 to SML between 2018 and 2023 for its contractual services.

The full report, released on May 22, disclosed that the disbursements made by GRA were for three out of the six service contracts executed by SML, despite the firm not receiving the necessary authorization from the Public Procurement Authority (PPA).

However, the reported payment declared by the government was GH¢1,061,054,778.00, which differs from the actual amount disbursed to the revenue assurance company [SML].

Details of the disbursement were captured on page 31 of the 306-page audit report published by the Office of the President on May 22, 2024.

The audit report also found that Strategic Mobilisation Limited changed its name from Strategic Mobilisation Enhancement Limited (SMEL) after the Public Procurement Authority (PPA) refused to approve a single-source contract on three separate occasions in 2017.

After an initial decision to not release the full audit report by KPMG, the Office of the President announced in a statement dated May 22 that the report had been released despite Right To Information (RTI) exemptions raised earlier.

On April 24, 2024, President Akufo-Addo, received a request from the Media Foundation for West Africa (MFWA), under section 18 of the Right to Information Act, 2019 (Act 989) (RTI Act), for a copy of the KPMG report.

The President had commissioned KPMG, on December 29, 2023, to undertake an inquiry to gain a clear understanding of the matters in controversy, and to be properly advised in taking the necessary decisions.

In justifying the earlier refusal to release the report, the presidency said the KPMG report comprised opinions, advice, deliberations, and recommendations that are integral to the President’s deliberative process and, therefore, qualifies as exempt information under section 5 (1) (a) and (b) (i) of the RTI Act.

At the time, a detailed press statement outlining KPMG’s findings and recommendations, as well as the president's directives to the Ministry of Finance and GRA was published.



MA/SA