Energy Ministry publishes draft terms of reference for forensic audit into high oil loss at Petrojam

by March 13th, 2019

The Energy Ministry has published a draft of the terms of reference for the forensic audit into the high loss of oil at Petrojam.

Energy Minister Fayval Williams last week announced that this would provide the opportunity for Jamaicans to comment on the document before the process begins.

The audit was ordered after it was revealed that some six hundred thousand barrels of oil were unaccounted for over a 5 year period. The oil is valued at $5.2 billion.

According to the terms of reference published in today’s (March 13) newspapers, the audit will quantify the oil losses at Petrojam for the period April 1, 2012, to March 31, 2018, establish the reasons for and recommend mechanisms to address identified oil losses.

It will also include the review of previous audits of Petrojam.

 

 

According to the terms, an assessment of all stages of the company’s operation from purchase of products to final sale including the refinery operations, delivery systems and procedures, measurement and recording systems and storage facilities will be conducted.

Liquified petroleum gas (LPG), gasoline, automotive diesel oil, ultra low sulphur diesel, gas oil, jet fuel, kerosene, lubricants, heavy fuel oil, bunker fuel and asphalt are among the products to be investigated.

The terms further state that for any irregular transactions, errors of omission and commission identified, the persons involved and the extent of their involvement will be investigated.

The publication by the Energy Minister also notes that the firm conducting the audit must have expertise in carrying out detailed forensic investigations as well as knowledge of complex inventory management system in the oil and gas industry, among others.

It adds that the proposal should demonstrate the firm’s experience with similar projects and the capacity to effectively undertake the project.

Meanwhile, the Ministry of Energy is urging members of the public who may have questions and comments about the terms of reference to email them to oillossaudit@mset.gov.jm or info@mset.gov.jm.