GRA entered into six contracts with SML without PPA approval — KPMG Report

The Ghana Revenue Authority (GRA) signed contracts with Strategic Mobilisation Ltd (SML) without approval from Public Procurement Authority (PPA), this is according to the report of the audit conducted by KPGM.

The report release by President Akufo-Addo and published on the website of the presidency said on 1 June 2018, SML was appointed a subcontractor to West Blue Ghana Ltd, then a service provider to GRA, to provide transaction audit services for seven (months) period ending 31 December 2018.

Subsequently on 1 January 2019, GRA executed without PPA’s approval, and extended transaction audit services agreement with SML, renewable on monthly basis, following the expiration of West Blue’s contract and SML’s subcontract agreement on December 31, 2018.

GRA entered into six (6) service agreements with SML, utilising the single-source method without approval from PPA.

“Evidently, GRA executed the above contracts with SML in breach of Act 663 [the Public Procurement Act] as amended,” parts of the KPMG report said.

Meanwhile, the KPMG audit report also highlights how SML, formally SMEL changed its name after three unsuccessful attempts to secure PPA approval to land a deal with GRA.

Page 11 of the KPMG report said “SMEL was incorporated on 14 February 2017. During the period 16 June and 14 September 2017, GRA made three (3) unsuccessful attempts to obtain PPA’s approval to single source SMEL to provide transaction audit services. On 22 November 2017, SMEL changed its name to SML.”

The report explained that the approval was denied because the company lacked “capacity or prior experience” in the delivery of the services.

Page 14 of the KPMG report indicated that despite the multiple rejections, the GRA proceeded to award contracts to SML without the approval of the PPA.