RELEASE OF KPMG AUDIT REPORT: PREZ AKUFO-ADDO SHOWS COMMITMENT TO TRANSPARENCY

President Nana Addo Dankwa Akufo-Addo has released the full report presented to him by the audit firm, KPMG, on the audit of revenue assurance contracts and transactions between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML), underscoring his commitment to transparency and accountable leadership. The president had earlier, on April 24, 2024, released the findings and recommendations of the report, which had been presented to him by KPMG on March 27, 2024. The initial release, which mirrors the full report, included directives to the Ministry of Finance and the GRA regarding future engagements with SML.

A statement released by Eugene Arhin, Director of Communications at the Office of the President, disclosed that the president, by a letter dated April 18, 2024, directed the Ministry of Finance and the GRA to terminate the upstream petroleum audit and minerals audit services that had not yet commenced, and for which no payments had been made. However, recognizing that these services could prevent significant revenue leakages, the president instructed that the Ministry and GRA conduct a comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements before implementing such services.

The president’s five-point directives, based on the findings and recommendations of KPMG, also included the possible termination of the transaction audit and external price verification services. According to KPMG’s findings, the GRA obtained only partial value or benefit from these services due to a lack of monitoring to ensure that SML performed the services as stipulated in the contracts.

Regarding the downstream petroleum audit services, the statement highlighted a clear need for the services provided by SML, noting that the GRA and the State have benefited significantly since SML commenced these services. There has been an increase of 1.7 billion litres in fuel volumes and an increase in tax revenue of GHS 2.45 billion.

KPMG also observed several qualitative benefits, including 24/7 electronic real-time monitoring of outflows and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters, along with six levels of reconciliation performed by SML to minimise under-declarations.

The president further directed that SML’s performance under any renegotiated contracts should be monitored and evaluated periodically to ensure compliance with expectations and that any new contract should comply with Section 33 of the Public Financial Management Act (PFMA).

Despite the initial release of the KPMG findings and recommendations, there were calls for the president to release the full report. To promote accountability, good governance, and transparency, the president has made the full 306-page report public. This decision was made despite provisions in the Right to Information Act, which exempt the president from releasing reports captured under Section 5 of the Act.

Section 5(1)(a) and (b)(i) of the Right to Information Act, 2019 (Act 989), states that information prepared for or submitted to the president or vice president containing opinions, advice, deliberations, recommendations, minutes, or consultations is exempt from disclosure, as such information’s disclosure could compromise the integrity of the deliberative process by revealing the thought processes, considerations, and influences on decision-making reserved for the highest offices of the land.