By The comprehensive KPMG report, made public by President Akufo-Addo on Wednesday, May 22, has unveiled that Strategic Mobilisation Ghana Limited (SML) owes the Ghana Revenue Authority (GRA) approximately GH¢ 31.88 million in unpaid taxes, accumulated over eight months of service provision.
The outstanding amount also encompasses accrued interest, reaching approximately GH¢ 18.50 million as of January 31, 2024.
As outlined in the report by the reputable accounting and advisory firm, SML has neglected its statutory duties by failing to file its tax returns or remit the owed taxes to the GRA.
This deviation from standard practice transpired between June 1, 2020, and August 31, 2023, a period during which the GRA usually deducts taxes for payments disbursed to SML.
The respected audit firm further emphasized that it has brought this anomaly to the attention of the GRA, prompting the Authority to issue a letter to SML demanding payment.
Despite this intervention, SML has not yet resolved its outstanding tax liabilities to the GRA.
“During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight (8) month period, did not have VAT and WHT deductions, amounting to GH¢13.38 million. This contradicts GRA’s standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023.”
“Additionally, SML failed to fulfil its statutory obligations by neither filing returns nor remitting these taxes to GRA. Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GH¢18.50 million owed by SML to GRA as of 31 January 2024. Consequently, the total liability incurred by SML amounts to GH¢31.88 million.”
“At the time of our review, we noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding a settlement of the outstanding amount,” an excerpt of the report said on page 14.
Following an investigation by The Fourth Estate, uncovering numerous irregularities in the contracts involving Strategic Mobilisation Limited (SML), the Ministry of Finance, and the Ghana Revenue Authority (GRA), President Akufo-Addo directed KPMG to conduct a comprehensive audit.
The investigation exposed discrepancies in SML’s assertions regarding its services aimed at addressing revenue losses in the downstream petroleum sector.
Despite SML’s claims that its services effectively targeted under-declaration, dilution, and diversion of petroleum products, evidence presented by The Fourth Estate indicated that these tasks were being carried out by other entities, including other companies and the National Petroleum Authority (NPA).
Christian Tetteh Sottie, Managing Director of SML, acknowledged the inaccuracies and promptly removed the false claims from the company’s website.
Despite these revelations and other admitted falsehoods, Minister of Finance Ken Ofori-Atta initiated a process in 2023 to expand SML’s contracts to include the gold and oil producing sectors. This decision significantly increased the annual contract sum to over $100 million.
Following an investigation by The Fourth Estate and subsequent public outcry, President Akufo-Addo suspended the contracts and commissioned KPMG to conduct an audit and submit a report.
While the president released a press statement regarding the findings, the full report unveils even more damning revelations about SML’s operations within its contracts with the Ministry of Finance and the GRA.
