Auditor General’s report reveals billions in oil losses at Petrojam

Auditor General’s report reveals billions in oil losses at Petrojam

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Auditor General’s report reveals billions in oil losses at Petrojam

by Donique Weston

High levels of oil losses, inconsistent recruitment and employment practices, explicit nepotism and a weakening financial position are some of the findings from Auditor General Pamela Monroe Ellis’ damning report on the operations of the state-owned oil refinery Petrojam.

 

It revealed that despite spending almost $125 million on loss reduction measures last year, Petrojam could not give an account for more than 600,000 barrels of oil over the past 5 years.

 

The missing oil represents almost half of the barrels that should have been used during normal refinery production and values $5.2 billion.

 

And the Auditor General’s report indicates that unaccountability at the state owned refinery has only gotten worse in recent times, whereas for the 2013/14 fiscal year, the company’s unaccounted oil stood at 115,793 barrels, by the 2017/18 year, this figure had grown to 184,951 barrels.

 

In the meantime, the report also pointed to large scale nepotism and multiple deficiencies in the refinery’s Human Resource recruitment and management practices.

 

According to the report, Petrojam’s recruitment and selection processes were not consistent with its own employment and recruitment policies.

 

Petrojam’s records indicated that it recruited 76 new employees between January 2015 and May 2018.

 

An assessment of its recruitment processes for 25 of those individuals found multiple inconsistencies in the selection process.

 

The company, for instance, did not advertise the vacancy for 13 positions, including general manager and manager of refinery and optimization.

 

Several individuals were also hired by Petrojam without the requisite qualifications.

 

In particular, posts of General Manager and Human Resource Development and Administration Manager which required post graduate level education were given to individuals who possessed bachelor’s degrees.

 

The Auditor General says she found evidence in which two individuals were employed despite being rejected by the interviewing panel.

 

In the first instance in January 2018, the individual was rejected by a panel for lack of industry, engineering and project experience.

 

A month later, the individual was re-interviewed by the Human Resources Manager, and recommended for a more strategic role on the project given intellect, expertise and strategic competencies.

 

The individual was employed as director of the project.

 

 

 

 



News Credit: IrieFM | Read here http://iriefm.net/auditor-generals-report-reveals-billions-in-oil-losses-at-petrojam/

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