Liberia Petroleum Refining Company
With USAID GEMAP guidance and assistance, the Liberia Petroleum Refining Company (LPRC) established a stable IT infrastructure, a fully operational automated accounting and reporting system, and a payroll management system at LPRC, key initiatives on which the company had fallen behind since the inception of GEMAP in 2006.Staff capacity was built in the automated software installed and in process mapping, a fundamental step in documenting and instituting internal controls. An LPRC Director of Finance was hired after a rigorous search and the co-signatory authority of the GEMAP Financial Controller was transferred to the new finance director in October 2009, as scheduled in the USAID GEMAP LPRC work plan.
Achievements and Impact at LPRC
- In 2008, total revenues amounted to roughly $13 million and the cash balance to $10 million. Less than three years ago, the company depended on bank overdrafts to meet payroll.
- Contributed $6 million to the Government of Liberia budget between February 2008 and September 2009, $1.8 million in taxes and $4.2 million in dividends.
- Tendered and engaged a firm to renovate and rehabilitate tank farms, a much needed initiative especially due to the insecurity of the existing structures. Diligence in negotiations resulted in reducing the final project cost by $5 million.
- Established a program to finance the LPRC rehabilitation program and received and Ministry of Commerce approval.
- Installed automated accounting and reporting software and trained staff.
- Produced regular financial statements and successfully closed 2008 financial books.
- Designed a new Chart of Accounts and restructured transaction processing for 2009.
- Generated a budget for 2009 with input from all departments. Received approval by the Board and copies of the institutional budget were shared with all departments.
- Installed an automated payroll system, introducing direct deposits, regularizing staff payments and minimizing the opportunity for fraudulent dealings in payroll.
- Monetized all benefits for director-level staff and above, enhancing transparency and increasing the tax base.
- Introduced procurement procedures thoroughly compliant with the Public Procurement and Concessions Act and trained staff.
- Introduced a computerized contract management system increasing efficiency of contract monitoring operations.
- Assessed IT systems and infrastructure and implemented solutions to enhance IT security.
- Operational and staff capacity built in vessel unloading and tank measurement processes to address tank losses amounting to $1 million in 2008 and an estimated $1.5 million if the trend continues.
Please see the relevant reports and documents in the Library for more information on GEMAP assistance activities at the Liberia Petroleum Refining Company.