Pressure group OccupyGhana has said President Nana Akufo-Addo must allow the Auditor-General to audit the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).

OccupyGhana, in a statement, said Article 187 of the 1992 Constitution foresaw situations where public interest in the financial matters of public auditee institutions (such as through GRA) might necessitate special audits.

The group said Article 187(8) specifically provided that when such matters arose, the Council of State should advise the President that an “Article 187(8) Public Interest Audit” was required.

"Indeed, and in practice, the President may seek and then obtain that advice. Then, the President would request the Auditor-General to conduct the audit."

“This provision in Article 187 is so critical and significant that the Constitution specifically sets it down as the only instance where a President has the power to request the independent Auditor-General to do anything.”

The civil society group said if the Council of State and/or the President failed, neglected, or refused to comply with Article 187, the Auditor-General should commence and conduct a special audit on his own under Section 16 of the Audit Service Act.

“The several advantages of complying with the constitutional provision include, critically, giving the Auditor-General the opportunity under Article 187(7)(b) to disallow payments found to be contrary to the law and then to surcharge (1) 'any expenditure disallowed upon the person responsible for incurring or authorising the expenditure' and/or (2) 'the amount of any loss or deficiency, upon any person by whose negligence or misconduct the loss or deficiency has been incurred.'”

A few days ago, President Akufo-Addo ordered an audit into the SML/GRA contract and suspended its performance.

A statement issued on Tuesday, 2 January 2024, said, “The president has appointed KPMG, the reputable audit, tax and advisory services firm, to conduct an immediate audit into the transaction between the GRA and Strategic Mobilisation Ghana Limited (SML), a contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain”.

The terms of the reference of the audit are as follows:

1. Conduct an audit to ascertain the rational or needs assessment performed prior to the contract approval by GRA and assess how the arrangement aligns with specific needs;

2. Assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML;

3. Evaluate the degree of alignment between current activities and the stipulated contract scope identifying any deviations;

4. Evaluate the value or benefit that SML has so far offered to GRA through this engagement;

5. Review the financial agreement, including pricing structures, payment terms, and resolution of any financial compliance issues;

6. And submit a report on your findings on the above, together with appropriate recommendations.

The president wants the work done in two weeks.