Yaa Serwaa Sarpong, the Director of Support Services at Strategic Management Limited (SML), has affirmed that they have met their performance obligations with the Ghana Revenue Authority (GRA), highlighting among other things, the closure of a revenue leakage gap due to their efforts.
On January 2 of this year, President Nana Akufo-Addo ordered KPMG to scrutinise the contract between GRA and SML, a move prompted by an exposé by the Fourth Estate.
An audit by KPMG into the revenue mobilisation transaction between GRA and SML revealed that the latter received a total of GH¢1,061,054,778.00 from 2018 to date.
After a comprehensive review of the audit report, the president also agreed with the recommendation to discontinue the upstream petroleum and minerals audit services previously provided to the Ghana Revenue Authority (GRA) by Strategic Management Limited (SML).
Regarding the transaction audit services, KPMG concluded that SML partially delivered on the service requirements. However, given the observations made during the investigations, GRA may not have obtained all the expected benefits from the service.
In an interview on Citi TV’s Point of View, Madam Yaa Serwaa Sarpong stated that their operations with GRA resulted in increased revenue for the government.
She also emphasised the necessity of plugging the revenue leakage.
“Since 2020 May, we have aligned data. The data gap in the first 16 months was reduced from GHC3,206.808,783 litres to GHC260,893,885 litres. We have tightened controls. More money came to Ghana because of our work… KPMG underrepresented what we have done. We’re not talking about consumption, we can consume, but if we don’t pay tax for it, the government don’t get money.
“What SML and GRA deal is about is to help close the revenue leakage gap, we came to align the gap, the revenue GRA was losing has now been closed up, the data is now aligning,” she said.
Background
The Fourth Estate released an investigative piece in December 2023 indicting SML, the GRA, and the Ministry of Finance. Fourth Estate accused GRA of awarding SML a 10-year contract that accrues SML $100 million annually. It also raised concerns about alleged underhand dealings.
SML, after the report was released, debunked claims of being awarded a 10-year contract duration, insisting that it has been given a 5-year contract instead.
SML further dispelled claims that it takes $100 million annually from its contract.
The Ghana Revenue Authority, in a statement issued on Wednesday, December 20, 2023, affirmed that its board and management followed the right processes in procuring the services of SML.
SML on January 3, 2024, welcomed a directive by President Nana Addo Dankwa Akufo-Addo, ordering it to suspend its ongoing revenue assurance operations and allow an audit to proceed into its contract with the Ghana Revenue Authority (GRA) and the Ministry of Finance.
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