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Page 68

CASE STUDIES Petrojam

Page 67 Compendium of a Review of Aspects of Petroleum Corporation of Jamaica

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

Table 21 Extract from Bid Evaluation Documents Requested/

Information Requirement Bidder #1

(Consultant) Bidder #2 Bidder #3

Form of Bid √ √ √

Bill of Quantities/Price Schedule √ √ √

Declaration √ - √

Disclaimer √ √ √

Decision: Responsive (YES/No) YES NO YES

 Bid Quotation (US$) 1,919,200 1,879,000 863,717

 Delivery time proposed 68 days 336 days 190 days

Source: Petrojam’s bidding documents

3.1.43. Our review of the Consultant’s bid revealed that it included additional items that were not part

of the bid specifications, thereby increasing the bid amount. On three occasions66, the Procurement

Committee rejected the Bid Evaluation Committee’s recommendation to award the contract to the

Consultant and requested further verification of the Consultant’s ability to undertake the contract.

However, we observed that the Procurement Committee subsequently endorsed the procurement which

was approved by the General Manager. We saw no evidence that the requested verification was

conducted to inform approval by the Procurement Committee. Also, Petrojam did not provide evidence

that the procurement was approved by the Board of Directors. By way of correspondence dated June 9,

2017, addressed to the Permanent Secretary MSET, the NCC endorsed the award of the contract to the

Consultant for US$1.9 million.

By way of correspondence dated June 26, 2017, the Permanent Secretary, MSET indicated that the

Cabinet">Infrastructure Committee of Cabinet recommended the approval of the contract to Consultant (name

deleted) for US$1.9 million, in keeping with the endorsement of the NCC. The Cabinet approved the

recommendation of the Infrastructure Committee.

3.1.44. On July 10, 2017, Petrojam and the Consultant signed an agreement for the fabrication of the new

Powerformer furnace (F-2) for $245.5 million (US$1.919 million). The works were scheduled to last 68

days after Petrojam’s final approval of all drawings, including final engineering information. However,

inadequate planning, poor project execution and monitoring resulted in variations of $38 million

(US$301,446) or 16 per cent of the contract sum. We requested evidence of the contractor’s submission

of the engineering drawing and Petrojam’s approval in order to confirm Petrojam’s acceptance, timeline

for the remaining 68 days of fabrication and the basis for the first payment. We found no evidence that

Petrojam approved all the drawings and engineering information submitted by the Consultant, before

fabrication commenced.

3.1.45. In September 2017, Petrojam requested a change in the construction material proposed by the

Consultant to reflect what was stipulated in its bidding document. However, the Consultant indicated

that the tubes were already fabricated with the material it proposed. Consequently, Petrojam purchased

the required material at a cost of $15.3 million (US$121,630) for the Consultant’s use. Petrojam did not

66 April 13, 19 & May 4, 2017.

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Page 53

52

References

Government of Jamaica (GOJ). 1985. Planning Institute of Jamaica Act. Government of Jamaica (GOJ). 1984. The Statistics Act. Ministry of Finance and the Public Service. 2017. Fiscal Policy Paper Financial year 2017/18. Ministry of Finance and the Public Service. 2018. Estimates of Expenditure 2018/19. As presented in the House of Representative. Ministry of Finance and the Public Service. 2016. Draft Revised Budget Manual – MTRBB. Office of the Cabinet. 2014. Whole of Government Business Plan (WOG), 2015-2018. 2016-2019. Office of the Cabinet. 2010. Performance Monitoring and Evaluation System Framework Document (PMES). Office of the Cabinet. Strategic Business Plans 2016-2019, 2017-2020 Office of the Cabinet Operational Plans. 2015-2018 Office of the Cabinet. Concept Paper. Towards the Development of an Integrated Results Based Management for the Government of Jamaica. Planning Institute of Jamaica (PIOJ). 2015. Post-2015 Sustainable Development Goal. Government of Jamaica National Outcome Document. Planning Institute of Jamaica (PIOJ). 2012. Vision 2030 Jamaica National Development Plan. Medium Term Socio-Economic Policy Framework 2012-2015, 2015-2018. Three Year progress report Planning Institute of Jamaica (PIOJ). 2017. Concept Note on Dialogue for Development Planning Institute of Jamaica (PIOJ).2017. National Sustainable Development Goals Core Group Planning Retreat. Statistical Institute of Jamaica (STATIN). 2016. Strategic Business Plans 2016-2019, 2017-2020. Statistical Institute of Jamaica (STATIN). 2017. Preparation of NSDS in Jamaica. Suggestions for a Roadmap (Draft). Statistical Institute of Jamaica (STATIN). 2016. Transforming our World: The 2030 Agenda for Sustainable development. Report on the National Consultation on the SDG Indicator Framework. Statistical Institute of Jamaica (STATIN).2016. Operational Plans. 2015-2018

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Page 54

References

53

Sir Arthur Lewis Institute of Social and Economic Studies (SALISES), UWI Mona. 2017. Draft Statistical Report. Jamaica’s Sustainable Development Goals Data. Sir Arthur Lewis Institute of Social and Economic Studies (SALISES), UWI Mona. 2017. Draft 1st Sustainable Development Goals Country report for Jamaica. Communication and Advocacy Road Map. Sir Arthur Lewis Institute of Social and Economic Studies (SALISES), UWI Mona. 2017. Jamaica Sustainable Development Goals Report. Thematic Chapters Statistical Institute of Jamaica (STATIN). 2017. Monitoring the SDGs in Jamaica United Nations Development Group (UNDG">UNDG). 2017. Mainstreaming the 2030 Agenda for Sustainable Development. Reference Guide to UN+Country+Teams">UN Country Teams. United Nations Development Programme (UNDP">UNDP)/Government of Jamaica (GOJ). 2017. A Road Map for SDG Implementation in Jamaica. United Nations (UN). 2017. Draft Guidelines and Best Practices on Data Flows and Global Data Reporting for Sustainable Development Goals. United Nations, IDI, INTOSAI Knowledge Sharing Committee (KSC).2017. Auditing Preparedness for Implementation of Sustainable Development Goals. Guidance for Supreme Audit Institutions.

www.PIOJ.gov.jm ...
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Page 97

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

Recommended Award for

In-Range Salary Increase

Award Level:

Recommended Award for

At-Risk Pay

Award Level:

Recommended Award for

Gratuity

Award Level:

SECTION E: SIGNATURES

Chairperson of Board of Directors Date

Chief Executive Officer Date

Portfolio Minister and/or designate Date

Once completed and signed by the Chairperson and CEO, please forward the

original to the Portfolio Minister and/or designate for signature. Once signed by all three parties, the original should be forwarded to the Cabinet

Office for confidential safeguarding.

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Page 102

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

APPENDICES

Appendix 1

TERMS OF REFERENCE FOR PERMANENT SECRETARIES

JOB TITLE : PERMANENT SECRETARY

REPORTS TO : PORTFOLIO MINISTER

ACCOUNTABLE TO : CABINET SECRETARY, PUBLIC ACCOUNTS

COMMITTEE, PORTFOLIO MINISTER

PUBLIC SERVICE COMMISSION

MINISTRY OF FINANCE and the PUBLIC

SERVICE

MANDATE : AS REFLECTED IN THE MINISTRY

PAPER CREATING THE MINISTRY

AND AS AMENDED FROM TIME TO TIME

ROLES AND RESPONSIBILITY

 To support the Minister in executing his responsibilities as a member of cabinet

(section 69 and 93 of the Constitution refer) – in particular, providing sound policy

advice; preparing documents such as Cabinet Submissions for policy decisions;

monitoring and evaluating the implementation of policies, programmes and projects

to ensure timely and cost effective implementation.

 To manage the resources of the Ministry and its varying entities (Statutory Boards

and Executive Agencies) to ensure they adhere to laws, or executive decisions as the

case may be.

 To provide timely responses to Parliamentary Committees in accordance with their

legitimate mandates, and to the public.

 To manage the human resources of the Ministry to ensure increased productivity and

quality of service; development of the potential of staff; enable proper succession

planning.

 To act as a member of the corporate body of Permanent Secretaries who collectively

are responsible for achieving the policy agenda of Government.

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