GRA terminates two SML contracts

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May 6, 2024
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The Ghana Revenue Authority (GRA), in compliance with the recent directives given by President Nana Addo Akufo-Addo on its deal with Strategic Mobilization Ghana Limited (SML), has terminated the transaction Audit and External Verification Service Contract (AEVS) with SML. The GRA has further directed that the Upstream Petroleum and Minerals Revenue Audit portions of the contract be suspended, pending further review of the contract details. GRA has also decided to amend the measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee structure. The Authority also says it will thoroughly review other provisions such as service delivery expectations, termination and intellectual property rights. The Authority disclosed this in a letter entitled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” signed by its Commissioner General, Ms Julie Essiam, and addressed to the Managing Director of Strategic Mobilization Ghana Limited (SML). “This is about the presidential directives dated 18 April 2024 on the recommendations of KPMG…Following the directives of the President, GRA has undertaken a thorough review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated 3 October 2019, the Measurement Audit for Downstream Petroleum Products Contract dated 3 October 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated 25 October 2023,” the GRA letter read. “Based on the review, the following actions are to be taken: First, The Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit for Downstream Petroleum Products Contract will be amended. Specifically, the fee structure will be revised to a fixed fee structure,” it added. “In addition, other provisions such as service delivery expectations, termination, and intellectual property rights will be subjected to a thorough review. Thirdly, the Upstream Petroleum and Minerals Revenue Audit portions of the Contract for Consolidation of Revenue Assurance Services cannot take effect until a comprehensive technical needs assessment, value-for-money assessment, and relevant stakeholder consultations have been achieved,” the letter to SML further read. President Akufo-Addo received the KPMG report on 2 April 2024, three months after tasking the audit firm to investigate the GRA-SML deal. The government, after reviewing the report, issued a press statement adopting the recommendations of KPMG in full. By the adoption, the government directed the GRA to review the deal among other directives. President Akufo-Addo on 2 January, 2024, appointed and tasked KPMG, a leading audit, tax, and advisory services firm, to conduct an immediate audit of the transaction between the GRA and SML. The terms of reference of the audit ordered by the President were six-fold. The President had asked KPMG to conduct an audit to ascertain the rationale or needs assessment performed before the contract approval by the GRA and to assess how the arrangement aligns with specific needs. Among other things, KPMG was to assess the appropriateness of the contracting methodology, verify compliance with legal standards and industry best practices in the procurement process for the selection of SML, review the financial arrangements, including pricing structures, payment terms, and resolution of any financial compliance issues; submit a report on your findings on the above, together with appropriate recommendations.

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October 7, 2024
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1 minute Read

Minerals Commission refutes understaffing claim

The Minerals Commission of Ghana has firmly refuted claims of understaffing, asserting that it possesses adequate resources to fulfil its inspection and regulatory duties.

Speaking during a parliamentary hearing before the Government Assurances Committee yesterday, Martin Ayisi, the Chief Executive Officer of the Commission, addressed concerns regarding reports of staffing challenges.

Ayisi reassured the committee that the Commission had both the personnel and logistics needed to effectively oversee the mining sector.

Ayisi’s remarks come in response to widespread reports suggesting the Commission was facing operational difficulties due to staffing shortages.

However, the CEO confidently dismissed these allegations, emphasizing that the Commission was well-equipped to manage its responsibilities efficiently.

“Capacity-wise, I think we’re okay. I was listening to the news this morning, and I heard one of the radio stations talking about capacity, [that] we’re understaffed; it’s not the case. In fact, I heard someone say that our 7 inspectors have been dismissed, but that is not the case.

“In terms of resources for training, in terms of resources to hire more people, we are okay,” he said.

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October 7, 2024
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3 minutes Read

Economic turnaround driving companies back to Ghana- Finance Minister

The Minister of Finance, Mohammed Amin Adam, says foreign companies are returning to Ghana due to the country’s economic rebound.

He said that just as it was heard of some foreign companies exiting the country due to economic hardship, many had started returning, owing to the positive growth in the first half of 2024.

“We were told that some companies left Ghana when the economy went down, and it’s important to note that companies are returning to Ghana because they see that the growth trajectory is positive,” he said.

“The latest is Virgin Atlantic (an airline company that left the country in 2013), which said only yesterday (October 6, 2024) that they’ve returned to Ghana to operate as an airline because they see economic recovery,” he noted during the second Quarterly Economic Roundtable discussion yesterday in Accra.

The event, jointly organised by the Ministry of Finance and the University of Ghana, was under the theme “Driving economic growth through Small and Medium-sized Enterprises (SMEs).

The Finance Minister indicated that some other companies were also returning to the country, but yet to be heard of.

“Let’s get ready for them to build strong partnerships, and use that capital, expertise, and technology that they’re bringing in so that we can leverage them to support the growth of the economy,” Dr Amin Adam told Ghanaian businesses.

Referencing figures from the Ghana Statistical Service (GSS), he stated that the economic growth for 2024 was exceeding every expectation, prompting major analysts and keen observers to revise their projections upwards.

The Minister noted that the country’s half-year Gross Domestic Product (GDP) growth of 5.8 percent for 2024 was the highest in the last five years, which was a testament that the economy was “back on track.”

“It is fascinating to note that the growth of 4.8 percent in quarter one and 6.9 percent in quarter two was driven largely by industry and agriculture sectors, for quarter two, all three sectors, including services drove the growth,” he said.

“What this means is that we are back on track. It also means that our policies to support the private sector are having a significant impact. Economic actors in these sectors are receiving needed support,” the Finance Minister said.

He encouraged all Ghanaians to be guided by unity of purpose on SMEs to consolidate the strides made in fiscal consolidation, debt restructuring, and economic reforms.

Pledging the government’s sustained support to SMEs, he said, “You are not alone or lonely. You are a priority of the Ghanaian society and this Government. We will not fail you.”

Mr Kyle Kelhofer, Senior Country Manager, International Finance Corporation (IFC), noted that the current macroeconomic landscape in Ghana required a resilient, flexible and innovative structure.

He called for a concerted effort from all stakeholders, including financial institutions, academia, government, and the private sector, to drive sustainable economic growth through SMEs.

Professor Nana Aba Appiah Amfo, Vice-Chancellor, University of Ghana, encouraged all stakeholders to ensure that the ideas and recommendations from the discussions were translated into actions that would improve development outcomes and the wellbeing of Ghanaians.

She reiterated that SMEs remained the backbone of the Ghanaian economy, providing jobs, and contributing significantly to GDP.

She recommended that policy interventions be directed at solving the cumbersome regulatory processes, limited access to finance, complex tax systems, and high utility tariffs, which often hampered the growth of SMEs.