SML vindicates procurement practices, counters KPMG’s Audit findings 

Strategic Mobilisation Ghana Limited (SML), a leading petroleum audit firm, has stated that the awarding of its performance-driven contract was entirely in accordance with the Public Procurement Act (Act 663), as amended, effectively countering the findings of a recent KPMG report.

In a detailed press statement signed by Yaa Serwaa Sarpong, Director of Support Services at SML, the firm addressed inaccuracies in the KPMG report, specifically refuting the claim that no technical needs assessment was conducted prior to SML’s engagement. 

The statement criticized KPMG for providing misleading financial figures and omitting crucial details about the investments and taxes contributed by SML throughout the contract period.

 According to SML, the report failed to account for significant expenses including GRA taxes of 31.5%, interest payments of 32%, and investment repayments, which misrepresented the financial dynamics of the contract.

Moreover, SML clarified that it had fully met the requirements of the Transaction Audit Service Agreement, contrary to KPMG’s assertion of only partial compliance. 

The firm emphasized its comprehensive fulfilment of monitoring, evaluation, and value-for-money assessments as mandated by the Ghana Revenue Authority (GRA).

SML also challenged KPMG’s critique of its External Price Verification Services, defending its role as an independent auditor with the necessary oversight to accurately assess and audit classification and valuation practices within ICUMS—capabilities that cannot be internally replicated by ICUMS itself.

Dispelling further misconceptions, the statement highlighted that contrary to claims by journalist Manasseh Azure Awuni and the Fourth Estate, the KPMG report confirmed that there was no 10-year contract, SML did not receive 100 million dollars, and their work did not overlap with that of the National Petroleum Authority (NPA).

SML reaffirmed its commitment to ethical practices and contributed positively to Ghana’s development. It also expressed appreciation for the support from both KPMG and the government in promoting high standards in national revenue management.

The firm has initiated a legal review of KPMG’s professional judgments and their implications on government stances, reflecting SML’s proactive approach to ensuring transparency and accountability in its operations.

This response comes in the wake of President Nana Addo Dankwa Akufo-Addo’s receipt of KPMG’s final audit report on the transactions between the Ghana Revenue Authority and SML, underscoring the ongoing scrutiny and governance of contractual engagements in Ghana’s petroleum sector.

By Eugene Davis