KPMG's audit report has revealed that the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has increased state tax revenue.

According to the report, the contract led to a significant increase in volumes, with a recorded rise of 1.7 billion litres, and consequently, an increase in tax revenue to the State amounting to GH¢2.45 billion.

Additionally, the report highlighted qualitative benefits, such as the implementation of 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML installed flowmeters.

The report also noted that SML conducted six levels of reconciliation, further enhancing the monitoring process.

These findings were disclosed in a press statement issued on Wednesday, April 24, by the Communications Director of the Presidency, Eugene Arhin.

However, the report also recommended a review of the contract for downstream petroleum audit services, particularly focusing on the fee structure.

This suggests that while the contract has resulted in significant improvements in revenue generation, there are aspects that require further scrutiny and adjustments to ensure fairness and efficiency.

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"There is a clear need for the downstream petroleum audit services provided by SML. GRA and the State have benefited from these services since SML commenced providing them. There has been an increase in volumes of 1.7 billion litres and an increase in tax revenue to the State of GHS 2.45 billion.

"KPMG also observed that there were qualitative benefits, including a 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters and six levels of reconciliation done by SML."

"This minimises the occurrence of under-declarations. However, it is important to review the contract for downstream petroleum audit services, particularly the fee structure. Given the experience and proficiency of SML over the last four years of providing this service, the President has directed that the fee structure be changed from a variable to a fixed fee structure. Other provisions of the contract worth reviewing include clauses on intellectual property rights, termination, and service delivery expectations."

On January 2 of this year, President Nana Akufo-Addo commissioned KPMG to investigate the contract between SML and GRA, prompted by an exposé by the Fourth Estate.

President Akufo-Addo has since received the KPMG audit report regarding the revenue mobilisation contract between GRA and SML.

The report was delivered to him on Wednesday, March 27, as announced in a Facebook post by Eugene Arhin, the Director of Communications at the Presidency, on Wednesday, April 3.