GRA/SML deal: KPMG’s audit will play a major role in our investigations – OSP
The Office of the Special Prosecutor(OSP) has indicated that the outcome of KPMG’s audit on the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML) will largely impact its investigation.
The OSP has disclosed that it has commenced a preliminary investigation into the contractual arrangements between the two entities.
Addressing journalists in Accra, the Special Prosecutor, Kissi Agyebeng, said the outcome of the audiaudit’s outcome work.
“Definitely, the auditing being done by the firm KPMG will have a lot to bear on this matter. What they will find, we will gladly receive and proceed with our investigations upon their findings. Collaborative work, there’s no point that after all the KPMG will do, we will just ignore what they have done. Whatever they will do will largely impact the nature and focus of the investigations,” the Special Prosecutor underscored.
The Office of the Special Prosecutor, in its half-yearly report released on December 29, 2023, disclosed that it had commenced a preliminary investigation into the contractual arrangements between the two entities.
It explained that the investigation was at the behest of a complaint filed on December 18, 2023, by The Fourth Estate.
President Nana Addo Dankwa Akufo-Addo on January 24, 2024, extended the period within which KPMG is to complete its audit on the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML) from the initial date of Tuesday, January 16 2024, to a new date of Friday, February 23 2024.
This follows a request made by KPMG to the President, requesting an extension of the two-week deadline initially given to the company to undertake the assignment.
Background
President Akufo-Addo on January 2, 2024, ordered an audit into the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
The audit to be conducted by KPMG was slated to last for two weeks.
The President’s action followed an investigation by The Fourth Estate which revealed that SML had been awarded contracts that entitle the company to more than $100 million every year.
The company admitted it was not performing the advertised services that claimed to tackle under-reporting, diversion and dilution when the investigative journalists confronted it with evidence. It has since deleted those claims from its website.
The Managing Director of SML, Christian Tetteh Sottie, also admitted that the company’s claim that its services had saved Ghana GHS3 billion was false.
President Akufo-Addo further instructed the Ghana Revenue Authority (GRA) and the Ministry of Finance to adhere to his directive and furnish KPMG with all necessary documentation for the upcoming audit.
“The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit, and 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, including any payments presently envisaged under its terms,” the President directed in a press statement.