SML was paid GH¢720million out of ESLA’s GH¢2.45bn revenue – KPMG report

It has emerged from the audit conducted by KPMG that Strategic Mobilisation Ghana Ltd (SML) was paid Gh¢720 million out of Gh¢2.45 billion revenue raised from the Energy Sector Levy Act (ESLA) under its revenue mobilisation transaction with the Ghana Revenue Authority (GRA).

The amount was raised between May 1, 2020 and December 31, 2023.

The revenue translates to 1.70 billion litres for the period with an average of 38.6 million litres per month.

Documents presented to KPMG for the audit indicated that GRA and SML asserted that the commencement of the contract by SML led to incremental volume liftings and tax revenue of GH¢12.98 billion for the period 1 May 2020 – 31 December 2023.

“Based on analysis using ESLA reported liftings as the pre-SML, the incremental reported volume that is attributable to the involvement of SML is determined as 1.70 billion litres for the period. This works out to a monthly average of 38.6 million litres per month.

“The incremental revenue that is attributable to the involvement of SML is GH¢2.45 billion for the period. The fee of GH¢720 million paid to SML for the same period constitutes 29.41% of the incremental tax revenue,” the report said.

—citinewsroom