Petrojam – Did not reconcile products received vs. volume ordered before paying suppliers

Share This:

Auditor General's Findings

In December 2018, the Auditor General’s Department (AuGD) published a ‘Compendium of a Review of Aspects of Petroleum Corporation of Jamaica (PCJ) and a Comprehensive Audit of Petrojam Limited’.

This audit found that Petrojam does not have an efficient system to reconcile the volume of products received against the volume ordered, upon the transfer of products from ships to its storage tanks. Consequently, Petrojam made payments for the volumes stated on the suppliers’ invoices without verifying the actual volumes received.

In keeping with industry practice, Petrojam used independent cargo surveyors to gauge the actual volume of products off-loaded by observing the pre and post-product volume readings of the ship. However, this method of reading does not accurately compensate for temperature adjustment, which normally results in a disparity between the observed volume off-loaded and the volume actually received. These factors would have accounted for its inventory inaccuracies.

Responsive image

Permanent Secretary (current): Carol Palmer

Breach Category: Resource Management

Permanent Secretary (at breach):

Breach Type: Poor Inventory Management

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Most Recent Breaches

MOEYI – Over $483 Million in Procurement Not Informed by Needs Assessment

April 11, 2022 | No comments

View Breach »

MSET- Poor decision-making costs Petrojam in excess of $67 million for a fence.

April 11, 2022 | No comments

View Breach »

MSET – Deficiencies in Petrojam’s Human Resources Management Practices

April 11, 2022 | No comments

View Breach »

MLSS – $2.95 Billion in Outstanding NIS Contributions

April 23, 2021 | No comments

View Breach »

HEART/NSTA – $75 Million disbursed without Compliance Checks

April 22, 2021 | No comments

View Breach »
0
Would love your thoughts, please comment.x
()
x