An accounting and advisory firm, KPMG, has recommended parliamentary approval and an “orderly resolution” in the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
This was contained in its full report, which has been released and published by the President.
The firm noted that “the contract did not receive parliamentary approval as required by Section 33 of the Public Financial Management Act, 2016 (PFMA Act 921).
Parliamentary approval should be sought to regularise the contract to meet the existing legal requirement, if practicable,” it recommended.
KPMG recommends the orderly resolution approach for consideration in the state’s contract with SML, despite its familiarity with the financial services sector.
It said the approach “prioritises a review of the existing contracts with the view to addressing noticeable complexities and areas of concern in a mutually negotiated and acceptable manner.”.
The report further outlined that it considered the systemic impact, cost to state, sustainability, complexity and deliverability, public trust, and implications.
“On the basis of the above, an orderly resolution could be used to address identified challenges with the Upstream Petroleum and Minerals Audit contract. These components of the contract cover major revenue sources for the state,” it said.
It added that there were revenue leakages whose impact could be significant, but strongly recommended the performance of a technical needs assessment to establish detailed gaps that should be resolved.
To ensure that the services were justified and the fees proportionate and commensurate with the services to be rendered, KPMG recommended that the contract be subjected to a technical needs and value-for-money assessment.
The report said that in its execution, the Ministry of Finance, GRA, and SML should conduct extensive engagement with all relevant stakeholders to ensure awareness creation, stakeholder buy-in, and alignment on the service contract, its deliverables, and outcomes.
It also recommended that the services that had been partially delivered require a comprehensive review to assess their ongoing relevance.
“With the integration of the Integrated Customs Management System (ICUMS), there had been a duplication of external price databases and research services provided by SML, necessitating immediate action to amend or reassess the services.
It said ICUMS capabilities for external price verification should be reassessed in view of the services provided by SML to optimise efficiency and adapt to evolving business dynamics.
By: Rainbowradioonline.com/Ghana
