Integrity issues a shocking report to [Sumo] and causes huge fines on Iraq
Integrity issues a shocking report to [Sumo] and causes huge fines on Iraq
2018/6/6 12:11
[Ayna-Baghdad]
Person of the investigation team of the prevention department in the Integrity Commission continued to impose fines on the National Oil Marketing Company [SOMO]; because of the delay in the loading and unloading of tankers for oil derivatives.
“The fines imposed on [Sumo] amounted to more than 100 million US dollars in 2017, in addition to 13 million and 620 thousand dollars in fines for the company in terms of service contracts for crude oil during Same period “.
In order to identify the latest actions taken with regard to the observations made in the previous comprehensive report prepared by the Service in April 2017, the Commission noted that its team had conducted a field visit to the Ministry of Oil – Oil Marketing Company [SOMO] The lack of compliance with the amounts of crude oil approved for export; the continued interruption of power in the southern ports repeatedly damaged the schedules for export and load carriers, and the lack of storage capacity and piping networks and the need to increase capacity, while the equipment was added pumping and Aviv in the ports “.
“The team in the [follow-up] report sent to the Office of the Minister of Oil, continued to fluctuate significantly in Basra crude oil, and the instability of the qualitative specifications, as the degree of specific density between [28-32] degree [ Iraq has a financial loss of 800 thousand US dollars per tanker], in addition to the weak pumping capacity and loading procedures in the ports of the south, although Basra crude oil accounts for about [85%] of the total exports of Iraq; because of frequent stops of the [turbines] As a result of technical problems and maintenance work, resulting in a reluctance For customers to download it, and reduced export rates. ”
The statement noted that “the report of the Panel noted the continuation of the recurrence of the same members of the Governing Council [as a certain original member], and committees to renew crude oil contracts and prepare schedules of the proposed assignments for companies wishing to contract, and open offers to members of the Special Committee to study and analyze the global oil market, and to identify and propose price differences Of Iraqi crude oil, as well as the absence of the signature of the representative of the Office of the Inspector-General [as an observer] the minutes of the meeting of the Committee to renew contracts for the export of crude oil. ”
“The report’s reference to large quantities of free water in exported shipments, explained the director of internal control and audit of the company, that this is due to extractive companies is outside the scope of our work, and that the recurrence of such cases lead to damage the reputation of Iraqi crude oil source , And this directly affects the price of selling in the global markets. ”
The Director of the financial and commercial authority referred to the suspension of dealing with private banks and the adoption of government banks exclusively to avoid cases of non-implementation of requests for the confiscation of letters of guarantee for unapproved contracts. As for the implementation of the terms of contracts by the companies contracted with them, he stressed that there are no companies with regard to implementation Contract clauses during 2017. ”
The Integrity Commission’s report, overall, identified the weakness of SOMO’s actions on the follow-up to the observations made in the previous report and that the response rate was below the required level. To the parties concerned in order to address the negatives, in the interest of the public. ”
alliraqnews.com
