The President emphasized that the renegotiation should be closely monitored and evaluated periodically to ensure it meets expectations.
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Akufo-Addo tasks the Finance Ministry, GRA to renegotiate the SML contract
President Nana Addo Dankwa Akufo-Addo has ordered the Ministry of Finance and the Ghana Revenue Authority (GRA) to renegotiate the revenue assurance contract with Strategic Mobilisation Limited (SML).
President Nana Akufo-Addo
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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.
"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 a 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."
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President Nana Akufo-Addo
Pulse Ghana
"This minimizes 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."
On January 2 of this year, President Nana Akufo-Addo commissioned KPMG to investigate the contract between SML and GRA, prompted by an exposé by the Fourth Estate.
President Akufo-Addo has since received the KPMG audit report regarding the revenue mobilization contract between GRA and SML.
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