The Ghanaian public, awaits with bated breath the release of the KPMG audit report on the controversial Strategic Mobilization Limited (SML) “sweetheart deal,” with the extended deadline looming just days away on Friday, February 23, 2024.
Concerns linger, however, regarding whether the audit will truly meet expectations, given KPMG’s past consulting work for the Ghana Revenue Authority (GRA) and potential conflicts of interest raised by Civil Society Organizations (CSOs).
President Nana Akufo-Addo’s decision to extend the audit period, initially sparked unease, with some activists fearing a whitewashing of the deal. This placed immense pressure on KPMG to demonstrate its independence and integrity in delivering the final report.
GRA sources indicate to The Herald that while KPMG, may have reservations about the transaction and its potential harm to the country, the exact nature of their conclusions remains unclear.
The key question lies in whether the firm which provides Audit, Tax and Advisory services, will succumb to the conflict of interest concerns raised by CSOs, or chart an independent course in its final assessment.
The potential conflict of interest arises from KPMG’s past consulting work for the GRA, which is directly involved in the SML deal. This raises concerns about the firm’s ability to deliver an impartial and objective audit.
CSOs, have been particularly vocal about these concerns, urging KPMG to prioritize its ethical obligations and distance itself from any potential conflicts. Their jitters are understandable, given the significant implications of the SML deal for Ghana’s economy and public trust.
With the deadline fast approaching, Ghanaians anxiously await the KPMG report, hoping it will provide clarity and transparency on the SML deal.
Only time will tell whether the audit will vindicate those who believe the deal is detrimental to the nation, or assuage the concerns of those who trust KPMG’s ability to deliver an objective assessment.
The coming days will be crucial in determining the outcome of this saga. One thing is certain: the stakes are high, and the Ghanaian public deserves a transparent and trustworthy audit that upholds the principles of good governance and accountability.
President Akufo-Addo, had extended the period for the audit firm to complete its audit on the GRA and SML deal.
The President had initially tasked KPMG to audit the transaction within one week which was supposed to end on January 16, 2024, but extended it further to February 23, 2024.
This was contained in a statement issued on January 24 and signed by the Director of Communications at the Office of the President, Eugene Arhin.
“The President of the Republic, Nana Addo Dankwa Akufo-Addo, has 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, 16th January 2024, to a new date of Friday, 23rd February 2024.
This, follows a request made by KPMG to the President requesting for an extension of the two-week period originally given the company to undertake the assignment. KPMG is to submit its final report no later than Friday, 23rd February 2024,” parts of the statement read.
The GRA, appealed to the President to allow the SML monitoring system to run until the investigation into the deal is concluded.
However, the statement noted that the President denied GRA’s request, ordering the continuation of the suspension of the transaction.
“The President has denied GRA’s request, and has directed that the status quo, with respect to the suspension of the performance of the contract, should remain in effect until the completion of the audit and, subsequent, submission of the audit report by KPMG,” Mr Arhin wrote.
Interestingly SML, has sued the Fourth Estate and Manasseh Awuni for defamation following the airing of the ‘GH¢3 billion lie report’.
The company is demanding GHS10 million in damages.
“Plaintiff says that the onslaught of backlash from the public which has arisen from the Defendants’ false reportage has adversely impacted Plaintiff’s operations.”
“Plaintiff says that although it published rejoinders to the Defendants’ false reportage, the Defendants have failed and/or refused to retract and apologise to the plaintiff for the false information they have consistently peddled,” portions of the suit said.
The Fourth Estate’s report alleged that the Ghana Revenue Authority (GRA) granted SML a purported 10-year contract with an annual payment of $100 million.
This raised concerns about possible irregularities. Following the report, President Akufo-Addo, ordered the suspension and audit of the contract. He subsequently appointed accounting and auditing firm, KPMG to audit the contract.
This was contained in a press statement issued by the Director of Communications at the Presidency Eugene Arhin on Tuesday, January 2.
“The President has also tasked the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for the conduct of the audit,” portions of the statement said.
The Terms of Reference of the audit are as follows: “I. conduct an audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA, and assess how the arrangement aligns with specific needs; ii. assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML;
iii. Evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations; iv. evaluate the value or benefit that SML has so far offered to the GRA through this engagement; v. review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues; and vi. submit a report on your findings on the above, together with appropriate recommendations.”
“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 statement concluded.
The Management of SML, welcomed the suspension of the contract and further stated that the directive by President Nana Addo Dankwa Akufo-Addo, to suspend the contract for audit would prove how transparent the agreement is.
“We welcome the directive and the decision to appoint KPMG to conduct an immediate audit of the contract. SML awaits the results of the audit, as it will help establish a clear and accurate picture of our operations. We hope that the report’s findings will be made public, allowing for transparency and accountability, “the Management said in a press release dated January 3.
SML Management expressed confidence that the audit will vindicate them.
“We remain resolute in upholding the highest business standards and welcome the scrutiny that this audit would bring. We are confident that the findings will confirm the integrity of our collaboration with GRA and the Ministry of Finance and provide ample evidence of the value we provide citizens.”
