PCJ issue referred to police, contractor general

BY LYNFORD SIMPSON Observer writer editorial@jamaicaobserver.com

Thursday, April 22, 2010

MINISTER of Energy and Mining James Robertson has referred the findings of the forensic audit into the operations of the state-run Petroleum Corporation of Jamaica (PCJ), to the police, the Auditor General, Parliament's Public Accounts Committee (PAC) and the Office of the Contractor General, for further action.

In a statement to Parliament yesterday, Robertson reeled off a litany of breaches at the PCJ, the details of which were first reported in the Sunday Observer.

He painted a damning picture of mismanagement of the entity during a time when the People's National Party formed the Government. The audit covered the period April 1, 2006 to March 31, 2007. The Jamaica Labour Party was returned to power in August 2007.

Phillip Paulwell, who was the minister with portfolio responsibility for the PCJ at the time, yesterday sought to ascertain whether the management of the PCJ had been given a chance to respond to the findings of the audit and whether a report was also available to be tabled in the House.

However, the Government side would have none of it and even Prime Minister Bruce Golding weighed in on the matter, pointing out that when a matter was referred to a committee of Parliament it was up to the committee to proceed as it sees fit.

House Speaker Delroy Chuck said the PAC can, in fact, request whatever additional documentation it may require when it begins its probe.

The forensic audit of the operations of the PCJ has uncovered contract irregularities, poor management of the Petrocaribe Development Fund and a cash-skimming scheme, among others.

It also highlights a lack of oversight, improper governance over the state agency by the group's managing director Dr Ruth Potopsingh who has been sacked, and the board of directors.

According to the audit, most of the breaches identified were linked to areas under the responsibility of the PCJ's former director of administration and the corporation's former financial controller.