Strategic Mobilisation Ghana Ltd (SML) has refuted the claim that it received GH¢1,061,054,778 as compensation for its contract with the Ghana Revenue Authority (GRA), as stated in the KPMG audit report.
In response to the findings, SML emphasised that the quoted figure by KPMG failed to consider the investments made by SML and the taxes paid during the period under review.
KPMG quotes a figure as compensation to SML. It is interesting to note that this figure is quoted without reference to the investments made and the taxes paid by SML over the period within the consolidated contract.
“The compensation of GH¢1,061,054,778.00 stated by KPMG is inaccurate,” SML stated.
Furthermore, SML highlighted that KPMG’s report did not account for 31.5 per cent of the total compensation, which was deducted as GRA taxes, creating a skewed perception of the financial dynamics involved.
SML finds that KPMG’s failure to state GRA taxes of 31.5% taken before payment, interest payments of 32% plus the investment repayment made by SML, and other taxes/duties over the period creates a very unbalanced impression of the relationship between the compensation and the investment and other related costs. This omission is highly misleading,” SML remarked.
Also, SML clarified that the audit assurance report by KPMG confirmed that it has not received a payment of $100 million from the government.
The Fourth Estate film had alleged SML’s contract was for 10 years. The media house alleged that the company received $100 million annually in payments.
However, the company stated that the KPMG report exonerated their position following the expose by The Fourth Estate.
In a press statement issued on Thursday, April 25, SML reaffirmed its commitment to contributing to Ghana’s development by adhering to ethically acceptable standards and maintaining the quality of its work.