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Page 90

- 89 - Prepared by Policy Development Unit, Public Sector Modernization Division

input on Compliance Results from central agencies, if required, including the Ministry of

Finance and the Public Service, Office of the Contractor General, Auditor General’s

Department, etc.; and

input on Leadership Results from the Board of Directors which would, if required,

commission a 3600 assessment for the purpose of the appraisal; such an assessment

entails collecting information from people who work with the CEO on a regular basis, i.e.,

superiors, peers and subordinates.

Performance Appraisal Recommendation

The performance appraisal sub-committee will review all input received on the performance of

the CEO. It will work on a consensus basis in determining both the performance appraisal rating

and preparing narrative feedback to be provided to the individual in person. For reasons of

confidentiality, the completed CEO performance appraisal documentation is forwarded only to the

Chairperson of the Board of Directors who will upon receipt summon the performance appraisal

sub-committee to make a verbal presentation at the next most appropriate Board meeting. Any

suggested changes in the performance appraisal ratings or performance pay recommendations

subsequent to the presentation and discussion will be made at the discretion of the performance

appraisal sub-committee which will have been delegated full decision making authority in this

regard. Once finalised by the performance appraisal sub-committee, the Chairperson of the

Board of Directors will then forward to the Portfolio Minister and/or designate the completed CEO

performance appraisal documentation, including the recommendations for performance pay.

Upon ratification by the Portfolio Minister and/or designate the performance appraisal

documentation is forwarded to the Cabinet+Office">Cabinet Office for safeguarding and the documentation

regarding payment of performance awards forwarded to the Chairperson of the Board of Directors

for implementation.

In cases when the Portfolio Minister and/or designate is not in agreement with a CEO

performance appraisal and performance pay recommendation put forward by the Chairperson of

the Board of Directors, she/he will instruct the Chairperson to forward the performance appraisal

documentation in its entirety to the Cabinet Secretary to adjudicate the final decision who may

bring it to the attention of the Prime Minister in extreme cases.

Performance Ratings

CEO performance ratings depend not only on the extent of corporate results achievement but as

well as on the manner in which they were achieved. The CEO’s demonstration of corporate

compliance with relevant legislation, regulations and instructions, as well key leadership competencies in the attainment of corporate results will be recognized and rewarded.

Overall performance is appraised with the following possible ratings:

Did not Meet /Unable to Assess

Did not achieve performance expectations or unable to assess the performance during the

annual business cycle (due to leave, training, special assignment).

Succeeded -

Did not fully succeed in meeting performance expectations. Or, while succeeded, it was in

a position with performance expectations of less scope and complexity in relation to those

of other CEO positions.

Succeeded

Has fully achieved the performance expectations.

Succeeded +

Exceeded the performance expectations. Or, fully succeeded in a position of greater scope

and complexity in relation to those of other CEO positions.

Surpassed Went well beyond performance expectations.

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June 10, 2021


Page 46

45

Chapter Eight

Recommendations

1. Cabinet should consider delegating overarching responsibility for coordinating the implementation of the SDGs to a specific entity, and documenting and communicating this information to all stakeholders. This would provide greater ownership and commitment for the successful implementation of the SDGs as well as identify clear lines of accountability. Additionally, the House of Representatives should consider the formation of an internal mechanism to apprise Parliamentarians of their role and the approach to be taken with respect to matters relating to SDGs.

2. The Government should consider placing emphasis on the areas with low levels of alignment to the national planning documents. This would allow the Office of the Cabinet to coordinate with the Ministries to implement policies at the sectoral level to enable full integration of the SDGs into national planning strategies and processes.

3. Ministry+of+Finance">Ministry of Finance and the Public Service (MoFPS) should consider representation on the National

SDG Core Group, as participation would reinforce the continuous alignment of the medium and long- term funding arrangements for SDG implementation with the Government’s fiscal programme. In the interim, the MoFPS should consider PIOJ’s request to designate a representative to the National 2030 Agenda Oversight Committee.

4. The Office of the Cabinet should consider enforcing the relevant legislation20 so that MDAs submit

their Strategic Business Plans within the stipulated timeframe for the timely completion of the 2018- 21 WOG Business plan. The Office of the Cabinet should also actively pursue Government’s approval of the Plan to outline the cross-cutting nature of MDAs programmes and activities to achieve Vision 2030 Jamaica - NDP and SDGs.

5. MoFPS should take steps to institute appropriate mechanisms to enforce compliance with the

requirements of submitting the Strategic Business Plans in a timely manner. This will enable the MoFPS to allocate resources adequately to the programmes and activities that are aligned to Government’s priorities. In addition, MoFPS should provide to the MDAs, written feedback based on its review of the Strategic Business Plans and budgets that were submitted, as it serves as a guide to the MDAs when completing future documents for submission as well as clarifies the position of the Ministry.

6. The National 2030 Agenda Oversight Committee should consider a review of all sectoral policies in

order to ensure policy coherence. This would maximize synergies between mutually supportive policies in order to reconcile and deliver the economic, social and environmental transformation needed to achieve the SDGs.

20 Financial Management Regulations and the Public Bodies Management and Accountability Act (PBMA)

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June 10, 2021


Page 65

CASE STUDIES Petrojam

Page 64 Compendium of a Review of Aspects of Petroleum Corporation of Jamaica

(PCJ) and a Petrojam+Limited">Comprehensive Audit of Petrojam Limited December 2018

Petrojam should have sought the support of the Permanent Secretary and the approval of the NCC and

Cabinet prior to undertaking the works. The Ministry views such an error as egregious and as such request

that Petrojam provides a full report to the Ministry on the issues which led to Petrojam not following the

GOJ Procurement Procedures with respect to this contract.’62

62 Permanent Secretary’s letter dated February 15, 2017

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Results Increase Increase

Did not meet X X X

Unable to assess X X X

Succeeded - X X

Succeeded

Succeeded +

Surpassed

The following table illustrates the range of “at-risk pay” as a percentage of the base salary

available to CEOs according to performance achieved and Public Body grouping:

Performance

Rating

Group 1

% of salary

Group 2

% of salary

Group 3

% of salary

Group 4

% of salary

Group 5

% of salary

Did Not Meet/ Unable to Assess

X X X X X

Succeeded - Up to 10% Up to 5% Up to 4% Up to 3% Up to 2%

Succeeded Up to 15% Up to 10% Up to 8% Up to 6% Up to 3%

Succeeded + Up to 20% Up to 15% Up to 12% Up to 9% Up to 6%

Surpassed Up to 25% Up to 20% Up to 16% Up to 12% Up to 8%

NOTE: See Annex A for a preliminary grouping of Public Bodies.

Performance Pay Approval

Compensation for the CEO position is approved by the Board of Directors and ratified by the

Portfolio Minister and/or designate. The documentation authorizing payment is forwarded to the

Chairperson of the Board of Directors for implementation and copies provided to the individuals

concerned, as well as to the Cabinet Office for safeguarding.

5.0 Timelines

Third Quarter Current Fiscal Year

At the beginning of the third quarter of the current fiscal year the following tasks are undertaken:

 The CEO will discuss Government priorities with the Portfolio Minister, then meet with

her/his Executive Management Team to discuss planning processes and performance

commitments of the Public Body for the next fiscal year.

 The Board of Directors then meets with the CEO to finalize planning processes by the

beginning of the fourth quarter and discuss preliminary performance commitments, etc.

Fourth Quarter Current Fiscal Year

At the beginning of the fourth quarter of the current fiscal year the following tasks are

undertaken:

 Upon completion, the Chairperson of the Board of Directors will submit the Corporate Plan

for review/approval to the Portfolio Minister.

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June 10, 2021


Page 67

CASE STUDIES Petrojam

Page 66 Compendium of a Review of Aspects of Petroleum Corporation of Jamaica

(PCJ) and a Petrojam+Limited">Comprehensive Audit of Petrojam Limited December 2018

causal factors of the F-2 Furnace’s low preheat temperature were external to the furnace and

recommended that the furnace not be replaced64. By way of email dated June 6, 2017, the General

Manager refuted the conclusion of the RCFA team on the basis that “the RCFA deposition is STILL based

on too many unacceptable hypothesis, assumptions and unsubstantiated/unverified calculations. I am

hereby making a FINAL decision to proceed with the purchase of F-2 Furnace replacement and this decision

is based on the following…”

3.1.40. Petrojam utilized the limited tendering methodology to invite three prospective bidders, including

the Consultant, for the design and supply of a new powerformer furnace, which Petrojam estimated to

cost $138.5 million (US$1.065 million). This was in breach of the procurement guidelines, which required

the use of International Competitive Bidding (ICB) or Local Competitive Bidding (LCB)65 for contracts

valued above $60 million. The use of the limited tender methodology could have restricted Petrojam from

obtaining quality and the best price.

3.1.41. Our review of the bid evaluation documents revealed flaws in the bid selection process. In the

first instance, Petrojam deemed one of the bidders (Bidder #2) non-responsive due to non-submission of

a declaration. However, the Invitation to Bidders did not make it a mandatory requirement to submit a

declaration.

3.1.42. We found inconsistencies in the invitation to bid; in that, Item 1.2 indicated a completion and

delivery time of 90 calendar days, while Section 6 of the Schedule of Requirements indicated “one hundred

and ninety (90) calendar days after award of contract[sic]. Petrojam indicated that it communicated the

correction of 90 days delivery time to all bidders, however, Petrojam did not provide evidence that the

communication was received by all bidders. Petrojam rejected Bidder #3 who indicated a schedule of 190

days on the basis that the bidder failed to meet the 90 day delivery timeline; despite the bidder’s costing

being 19 per cent below the comparable estimate. Petrojam selected Bidder #1 on the basis that the

Consultant could design and supply the furnace within 68 days at a cost of US$1.9 million, which was 80

per cent in excess of Petrojam’s comparable estimate and more than 100 per cent above the lower bidder

(Table 21).

64 Root Cause Failure Analysis (RCFA) Report on the Underperformance of F-2 Furnace. RCFA team members included two reliability and mechanical engineers, two senior process engineers, two process operators and one safety officer. 65 Ministry of Finance and the Public Service Circular dated September 28, 2016 based on Cabinet Decision No. 30/16 dated September 12, 2016; limits and threshold will be increased effective October 1, 2016

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June 10, 2021


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