Dean of Graduate Students at the University of Professional Studies, Accra (UPSA), Prof. Samuel Antwi, has suggested that government may have to pay more money to KPMG as a result of the extension of their work tenure.

KPMG, tasked with auditing the revenue assurance contract signed between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML-Ghana) was expected to end their audit on Tuesday, January 16, 2024.

However, following a request for an extension from KPMG for them to round up their investigation, the new date is Friday, February 23, 2024.

The extension of the work tenure, Prof. Antwi stated, despite being a request from KPMG will still require the government (the client) to pay for work being done over the period.

Speaking on the Joy Super Morning Show, he said, “We’re going to pay for it because as I explained for every additional time except ‘give me some few days to put up my report’ an assignment that you were given two weeks to do, if you’re given six additional weeks, it means that there is some additional works you intend to do for which the client should pay.

“You can’t tell me that a job you have spent two weeks to do, you need six weeks to write a report. So we really need to interrogate why KPMG is asking for an additional six weeks.

“It means that in evaluating the work, the pre-audit arrangement, they made some mistakes in estimating the time they needed to complete the work. And once they realised that they needed an additional six weeks to complete the work, the client would have to pay more money.”

According to him, the turn of events is rather strange and KPMG may have to explain why they could not finish within the initial two weeks.

“They should come and tell us what is the issue that they’re unable to finish in two weeks, they need to finish in eight weeks,” he said.

Background

President Akufo-Addo on January 2, 2024, ordered an audit into the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).

The audit to be conducted by KPMG was slated to last for two weeks.

The President’s action followed an investigation by The Fourth Estate which revealed that SML had been awarded contracts that entitle the company to more than $100 million every year.

The company admitted it was not performing the advertised services that claimed to tackle under-reporting, diversion and dilution when the investigative journalists confronted it with evidence. It has since deleted those claims from its website.

The Managing Director of SML, Christian Tetteh Sottie, also admitted that the company’s claim that its services had saved Ghana GHS3 billion was false.

President Akufo-Addo further instructed the Ghana Revenue Authority (GRA) and the Ministry of Finance to adhere to his directive and furnish KPMG with all necessary documentation for the upcoming audit.

"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 President directed in a press statement.