The Ministry can confirm that Petrojam aborted the insurance tender after being advised by the Office of the Contractor General (OCG) of its investigation of the tender process arising from a complaint by Marathon Insurance Brokers Limited.
On October 6, 2016, Petrojam commenced a Local Competitive Bidding process to secure insurance coverage. At the end of the tender process, four (4) local brokers responded to the tender. Subsequently, in February 2017, the OCG advised Petrojam that an investigation had been launched and not to award a contract until the conclusion of its investigation. In keeping with the OCG’s directive, Petrojam aborted the tender process.
Recognizing that the insurance contract in force was due to expire as well as the considerable magnitude of the risks associated with operating an oil refinery without insurance coverage, Petrojam sought and received Cabinet’s approval on April 3, 2017 to extend the existing contract.
Petrojam is awaiting the formal report of the OCG, now Integrity Commission, in relation to its investigation into the complaint by Marathon Insurance Brokers Limited. Upon receipt, Petrojam will be guided by the report and re-tender to select a suitable insurance provider, on the basis of the evaluation criteria, which includes cost.