Strategic Mobilisation Ghana Ltd (SML) has denied the claim that it received GH¢1,061,054,778 as compensation for a contract with the Ghana Revenue Authority (GRA).
In its audit report, KPMG disclosed that SML was paid a total of GH¢1,061,054,778.00 from 2018 to date for a revenue management-related contract.
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However, SML emphasised that the quoted figure by KPMG failed to consider some costs by SML and the taxes paid during the period under review.
“KPMG quotes a figure as compensation to SML. It is interesting to note that this figure is quoted without reference to the investments made and the taxes paid by SML over the period within the consolidated contract.
“The compensation of GH¢1,061,054,778.00 stated by KPMG is inaccurate,” SML stated.
SML also said KPMG’s failure to state that 31.5 per cent of the total GH¢1,061,054,778.00 was taken as taxes creates a very unbalanced “impression of the relationship between the compensation and the investment and other related costs.
“SML finds that KPMG’s failure to state GRA taxes of 31.5% taken before payment, interest payments of 32% plus the investment repayment made by SML, and other taxes/duties over the period creates a very unbalanced impression of the relationship between the compensation and the investment and other related costs. This omission is highly misleading,” SML remarked.
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 by KPMG was slated to last for two weeks.
The President’s action followed an investigation which revealed that SML had been awarded contracts that entitled 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 GH¢3 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.