Accession Number : ADA292171

Title :   Aid-Financed Procurement: Allegations of Irregularities in the Procurement of an Oil Drilling Chemical.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV

PDF Url : ADA292171

Report Date : DEC 1989

Pagination or Media Count : 21

Abstract : The General Accounting Office's review included research on the production and uses of CMC, specifications established by Oil Companies Materials Association, and standards identified by the oil-drilling industry. Analyzed were statistics on annual CMC production and import/export levels. GAO met with AID'S procurement officials and obtained information on its commodity import program. AID's regulations on its source and origin requirements were also reviewed. GAO obtained and reviewed pertinent documents, such as the IFB5, contracts, certifications, supporting procurement vouchers, and correspondence among the parties involved from the time the Jordanian and Pakistani IFBs were issued until the present. GAO spoke with Messina and LCPi officials to obtain their views on the events. GAO also met with AID procurement officials and reviewed AID'S regulations to gain an understanding of the agency's review process for compliance with requirements for purchases under its commodity import program. GAO also met with officials from SGS. Obtained was a sample of the CELTROL-LV provided to Pakistan from AID, GAO had it analyzed by an independent testing laboratory to determine compliance with oil industry standards and contract requirements. The following criteria was used for choosing an appropriate testing laboratory: (1) it should be recognized by the American Petroleum Institute, (2) it should not have been identified by LCPi as a potential testing laboratory, and (3) it should be able to conduct all of the required tests. Oil industry officials were also interviewed to determine the implications of noncompliance with IFB requirements.

Descriptors :   *CHEMICALS, *DRILLS, *CARBOXYMETHYLCELLULOSE, PAKISTAN, JORDAN, REQUIREMENTS, CONTRACTS, EXPORTS, PRODUCTION, ACCOUNTING, MATERIALS, GAIN, PROCUREMENT, STANDARDS, STATISTICAL ANALYSIS, REGULATIONS, TEST FACILITIES, PETROLEUM PRODUCTS, DRILLING, PETROLEUM INDUSTRY, AUDITING, IMPORTS, OIL WELLS.

Subject Categories : Industrial Chemistry and Chemical Processing
      Mining Engineering
      Plastics

Distribution Statement : APPROVED FOR PUBLIC RELEASE