Special Investigations – Auditor General's Department

Compendium of a Review of Petroleum Corporation of Jamaica (PCJ) and A Comprehensive Audit of Petrojam Limited

Adrian McNeil — Tue, 04 Dec 2018 23:26:40 +0000

The Petroleum Corporation of Jamaica (PCJ) is a statutory organization created by the Petroleum Act, with the exclusive right to explore and develop the petroleum resources of Jamaica. It is also the Government agency charged with the responsibility for facilitating the development of the country’s energy resources in a manner that supports the overall strategy for national development in support of the National Energy Policy and Vision 2030 National Development Plan (NDP). PCJ’s subsidiary Petrojam’s primary function is to import and convert crude oil into various types of petroleum products for supply and use in the domestic market. Both PCJ and Petrojam’s governance practices and financial operations are subjected to the Public Bodies Management & Accountability (PBMA) Act, GOJ Corporate Governance and Accountability Frameworks and applicable guidelines issued by the Ministry of Finance and the Public Service (MoFPS).

Stemming from public concerns regarding mismanagement at Petrojam, I commissioned a comprehensive audit using the performance, compliance and special audit methodologies, as well as financial statements assessment of Petrojam. I also reviewed specified areas of PCJ to assess whether its practices were consistent with the principles of good financial management and whether the practices accorded with GOJ Guidelines and good practices, to attain value for money. I also sought to assess whether PCJ provided robust oversight to Petrojam, based on its parent subsidiary relationship. This report is a compendium of the findings of the reviews of both entities.

Compendium of Special Investigations Report on the Ministry of Labour & Social Security – NIF Equity Management and Rehabilitation Programme

Adrian McNeil — Thu, 08 Mar 2018 20:08:21 +0000

National Outcome #3: Effective Social Protection, of the Vision 2030 National Development Plan (NDP), outlines one of the national strategies to ‘promote greater participation in, and viability of social insurance and pension schemes’ to achieve the National Goal – Jamaicans are empowered to achieve their fullest potential. This is consistent with the Sustainable Development Goal – Target 1.3 to ‘Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable’.

This report comprises a compendium of findings of special investigations of the acquisition of equity investments by the National Insurance Fund (NIF) and the Ministry of Labour and Social Security (MLSS) Rehabilitation Programme. The audits revealed poor governance practices and instances where actions of public officials were in contravention of Government policies and guidelines.

Whereas NIF Investment Policy established thresholds for the approval of investments by the National Insurance Advisory Board, the Minister of Finance and the Cabinet, there were transactions that breached the guidelines regarding approval levels as well as, created a conflict of interest. In the case of the MLSS, control deficiencies in the Rehabilitation Programme, led to breaches of the related policy. The Auditor General’s Department warned the Ministry, that it had a high-risk exposure to irregular activities because of its failure to address these weaknesses in its control environment in a holistic manner; from as far back as 1990, in successive years and even more recently in our December 2015 – National Insurance Scheme (NIS) activity-based audit.

I wish to express my sincere thanks to the Management and staff of the entities for the cooperation and assistance given to the audit team.

Ministry of Labour and Social Security, Corporate Governance

Auditor General's Department — Fri, 17 Mar 2017 15:03:06 +0000