Auditor general urges stronger management of public bodies
THE AUDITOR general’s report into the systemic breakdown in resource management practices at the Petroleum Corporation of Jamaica (PCJ) and Petrojam, which was tabled in Parliament yesterday, outlines a series of recommendations that should guide the entities going forward.
“The report contains our findings from audit examination of the governance framework, resource, procurement and contracts management at the Petroleum Corporation of Jamaica and Petrojam Limited,” said Auditor General Pamela Monroe Ellis.
The audit was undertaken in response to public concerns about allegations of malpractice at Petrojam. A comprehensive audit was conducted using the performance audit, special investigation and financial statements analysis approach, the auditor general said.
The report noted that the audit sought to assess whether the operational activities, governance and monitoring framework at both PCJ and Petrojam were consistent with the principles of good financial management and whether the procurement and contract management practices accorded with the Government of Jamaica’s guidelines to attain value for money.
Monroe Ellis said that given that boards of public bodies are appointed by, and accountable to, the portfolio minister and not the permanent secretary (PS), the PS’s responsibility is limited to advising the portfolio minister of any significant issues pertaining to that board.
“In that regard, the permanent secretary has no authority to take action against a board. Accordingly, the permanent secretary’s responsibility under this arrangement is the establishment of relevant control mechanisms to effectively monitor and inform the portfolio minister about significant matters in relation to the operations of public bodies. Failure by a permanent secretary to carry out his/her functions, in relation to the accountability framework, undermines the minister’s monitoring responsibilities,” the report said.