Co-Chair of the Citizens Movement Against Corruption, Edem Senanu has described the letter that was written to President Nana Addo Dankwa Akufo-Addo by the Ghana Revenue Authority (GRA), raising issues against the suspension of the agreement with the Strategic Mobilisation Limited (SML), as unusual.
He indicated that it is intriguing for any head of an agency to write to the president registering their disapproval of the decision that has been taken by the president.
The GRA had appealed to Mr Akufo-Addo to allow for the running of the SML system that has been installed to enhance revenue assurance for control purposes.
President Akufo-Addo had ordered the suspension of the SML deal and further appointed accounting and auditing firm, KPMG to audit the contract.
A press statement issued by the Director of Communications at the Presidency Eugene Arhin on Tuesday, January 2 said “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.”
The Terms of Reference of the audit were: “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.
But according to the Commissioner General of the GRA, Rev. Dr. Amishaddai Owusu-Amoah, suspending the operation of the SML system installed would have ramifications and disruptions on operations.
“Having carefully reviewed the concern and based on our own understanding of the contracts and the deliverable, we are of the opinion that the system that has been installed to enhance revenue assurance, for control purposes, and also to aid with the ongoing investigation could with your kindest permission be allowed to run,” portions of GRA’s letter said.
It added “We can confirm that the suspension, to all intent and purposes, will lead to revenue losses.”
Commenting on this on the mid-day news on 3FM on Tuesday, January 23, Mr Senanu said “It is intriguing and very unusual. When a president makes a decision and makes a directive, it is not usual for public officers to then write back to the president suggesting that they want to proceed and vary the instruction of the president, particularly in context when you had the majority of stakeholders saying that this deal is not what is in the interest of the country.
“I can’t understand or fathom why anyone would want to do this.”
