Performance Audit Report deems fuel procurement prior to 2011 ‘’operating in a policy vacuum’’

‘’Prior to the formulation of the Corporation’s Fuel Procurement Policy in January 2011, Enemalta’s fuel procurement function was effectively operating in a policy vacuum’’, the National Audit Office said. In a performance audit addressing the effectiveness of Enemalta’s Corporation’s fuel procurement, the NAO listed a series of concerns with respect to the operations of the Fuel Procurement Committee (FPC); ‘’no policy framework was in place during the period 2008 up to end 2010’’, ‘’minutes taken during meetings held in 2008 and 2009 lacked rudimentary level of detail and bore no information relating to meeting discussions and decisions taken’’, and ‘’poor record-keeping and documentation’’. NAO said that Such implications rendered it impossible to effectively audit the decision making process employed by the Committee in adjudicated tender bid received and evaluated. Furthermore, the audit sheds light that according to ‘’limited information’’, FPC Committee awarded tenders to bidders who did not submit the most favourable offer. While NAO has no concerns relating to reconciliation of fuel procured in terms of quantity, quality-related concerns have emerged, with specific reference to instances of incongruence between employed standards and test methods. With regards to hedging, NAO said that Enemalta Corporation undertakes hedging with respect to its fuel and foreign currency (forex) requirements and entrusts this task to the Risk Management Committee (RMC). ‘’An absence of an appropriate policy framework against which the Corporation may subsequently set its strategic orientation’’ noted NAO. Furthermore, the audit sheds light on an apparent overlap between the Ministry’s and Corporation’s input on the matters obfuscating an already complex state of affairs. The full audit can be found on the following link: NAO Performance Audit Report