Former Auditor-General Daniel Domelevo says the Audit Service is in the position to do a better job in auditing the agreement between the Ghana Revenue Authority (GRA) and the Strategic Mobilisation Limited (SML) than KPMG.
He stated that the directive by President Nana Addo Dankwa Akufo-Addo to KPMG will further waste public resources because state agencies such as the Economic and Organised Crime Office (EOCO), the Office of the Special Prosecutor (OSP) and the Audit Service are there to perform this particular task.
Asked for his views on the directive while speaking on the News Central on TV3 Wednesday January 3, Mr Domelevo said “It is not necessary, it is a further waste of public funds, because there are several anti-corruption agencies in the country. First, we have the EOCO, we have the OSP and if it is a matter of audit we have the Ghana Audit Service or the office of the Auditor-General.
“If you read Article 187 Clause 8 of the Constitution, it says that in the national interest the President, upon advice from the Council of State may ask the Auditor-General to conduct audits.
“So such audits can be done better by the Auditor-General instead of the KPMG.
“So my initial reaction is that this is a further wastage of public resources which must be avoided.”
Some civil society activists have also opposed the President’s directive to KPMG.
For instance, a Vice President of IMANI Africa, Bright Simons said the nature of the allegations against the deal requires state bodies with the right powers and independence to audit.
“The terms of reference do not extend to a forensic examination of the procurement abuses (single sourcing of an unqualified entity) nor of the technology system purported to have been created for the job, etc. A detailed concurrent review by the OSP & CHRAJ is warranted.
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The terms of reference do not extend to a forensic examination of the procurement abuses (single sourcing of an unqualified entity) nor of the technology system purported to have been created for the job, etc. A DETAILED concurrent review by the OSP & CHRAJ is warranted.— Bright Simons (@BBSimons) January 2, 2024
“KPMG’s practice oversight bosses should prudently preserve the firm’s reputation & drop this assignment. This issue is a hot political potato right now. The nature of the allegations requires an IN-DEPTH look by state bodies with the RIGHT POWERS & INDEPENDENCE. KPMG has neither,” he wrote on X.
KPMG’s practice oversight bosses should prudently preserve the firm’s reputation & drop this assignment. This issue is a hot political potato right now. The nature of the allegations requires an IN-DEPTH look by state bodies with the RIGHT POWERS & INDEPENDENCE. KPMG has neither. https://t.co/QFhgLQa8eW
— Bright Simons (@BBSimons) January 2, 2024
Similarly, Executive Director of the Africa Centre for Energy Policy Benjamin Boakye said KPMG is a client of GRA, therefore, it would be unethical for it to accept this particular assignment.
“KPMG has its integrity at stake if it accepts this job. It is a client of GRA and its investigation against the leaders of one of its LARGE portfolios is exceedingly suspicious. Simply unethical,” he wrote on X.
KPMG has its integrity at stake if it accepts this job. It is a client of GRA and its investigation against the leaders of one of its LARGE portfolios is exceedingly suspicious. Simply unethical. https://t.co/vnn274HcEI
— Benjamin Boakye (@benboakye) January 2, 2024
President Nana Addo Dankwa Akufo-Addo had appointed accounting and auditing firm, KPMG to audit the contract between the Ghana Revenue Authority (GRA) and the Strategic Mobilisation Ghana Limited (SML).
The President tasked KPMG to complete the audit in two weeks.
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.