The KPMG audit report on the contracts between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has revealed several breaches in the country's laws regarding procurement processes.

According to the report, six contracts between GRA and SML were executed without the necessary approvals from the Public Procurement Authority (PPA) and Parliament, as required by law.

The contracts included transaction audit services, external price verification services, consolidation services agreements, and measurement audits of downstream petroleum products.

The audit report highlighted that GRA sought PPA approval for single-source arrangements with SML on three separate occasions in 2017 but was declined due to SML's lack of capacity and prior experience in providing the services.

Despite this, GRA went ahead to engage SML as a subcontractor to West Blue Ghana Ltd without PPA approval.

Furthermore, after the expiration of West Blue's contract and SML's subcontract agreement, GRA entered into a new agreement with SML for transaction audit services without obtaining PPA approval. This agreement was extended on a monthly basis without the necessary approvals.

GRA entered into six (6) service agreements with SML, utilising the single-source method without obtaining approval from PPA, as outlined below:

a) Transaction Audit Services — 1 June 2018

b) Contract Extension — 1 January 2019

c) External Price Verification Services — 1 April 2019

d) Consolidation Services Agreement (Transaction Audit & External Verification Services) — 3 October 2019

e) Measurement Audit of Downstream Petroleum Products — 3 October 2019

f) Addendum to Measurement Audit for Downstream Petroleum Products Agreement — 29 July 2020.