The Jamaica Manufacturers and Exporters Association (JMEA) yesterday stated its concern over the controversy surrounding the governance and operations of Petrojam, as well as the lack of transparency associated with the company over the years.

In a press release the, JMEA described the matter as “damning” and indicates a clear mismanagement within the leadership of the company that fuels Jamaica’s economy.

The JMEA, while applauding the Public Administration and Appropriations Committee (PAAC) for bringing the misconduct and mishandling of State resources by Petrojam to the attention of the country, says it awaits the findings of the investigation and anticipates that anyone indicted of any criminal activity will feel the full extent of the law.

“The Government has been touting fiscal management as a part of our economic resurgence and this must extend to our State-run entities. The Government needs to demonstrate that they are serious about good governance and that they will not tolerate the wanton waste of taxpayers’ money,” the JMEA said.

It added that the proper management of Petrojam — Jamaica’s only oil refinery and one of the largest contributing companies to the manufacturing sector with a value-added contribution of $10.9 billion to gross domestic product (GDP) in 2016 — must be of the highest priority.

The controversy engulfing Petrojam continued to deepen on Monday with news that the three Jamaican members on the board of the oil refinery have quit amidst a hailstorm of allegations which have rocked the company over the past several weeks.

Jamaica Observer sources confirmed that Chairman Perceval Badahoo-Singh along with fellow directors Richard Creary and Harold Malcolm handed in resignation letters on Monday.

The development comes days after Science, Energy and Technology Minister Dr Andrew Wheatley summoned all three to a meeting prompted by the preliminary findings of an investigation into several “grave and troubling matters at Petrojam which have dominated public discourse in recent weeks”.

Petrojam is jointly owned by the Petroleum Corporation of Jamaica (PCJ), which has 51 per cent, and PDV Caribe SA of Venezuela. In 2006 the Government of Jamaica entered into a joint venture arrangement with the Government of Venezuela, through the PCJ and PDV Caribe — a wholly owned affiliate of Petroleos de Venezuela, SA (PDVSA) — for the expansion, joint cooperation, and management of the Kingston refinery.

The agreement was effected on August 14, 2006, resulting in the PCJ, on January 1, 2008, transferring 49 per cent of its share capital in Petrojam to PDV Caribe SA.

The PAAC is now awaiting more answers from the Petrojam team on a number of other issues, including details of the contract arrangement with technical consultants Asha Corporation, which is being retained at $21 million per annum and has so far been paid US$59,000, US$47,000 and US$55,000 for three contracts between May 2017 and April of this year,

The general manager and his team have also been asked to report on the US$445,000 in corporate donations which Petrojam disbursed in 2017/18 to various causes, and the $13.9-million annual retainer contract with a public relations and marketing firm.