CITGO Petroleum Corporation announced the appointment of Jack Lynch as the company’s new Director of Ethics and Compliance. Lynch will continue to serve as Vice President in charge of Legal and Government Affairs, a position he has held since October 2019. As CITGO’s Director of Ethics and Compliance, he will report directly to Chief Executive Officer Carlos Jordá and will have direct access to the Audit Committee of the Board of Directors.
This appointment follows the Board’s extensive review of CITGO’s compliance systems and industry best practices in this area.
In this position, Lynch will oversee all facets of CITGO’s existing compliance and ethics program. Specifically, he will be responsible for overseeing CITGO’s Compliance Committee, periodically evaluating the effectiveness of the compliance and ethics program, conducting risk assessments, monitoring and reporting on compliance performance, promoting a culture of compliance and ethics, and planning employee training in the program. Additionally, as the Board of Directors continues to investigate allegations of past management conduct, Lynch will be responsible for continuing to implement the Board’s recommendations for corrective actions and improvements to the compliance program.
Prior to joining CITGO, Lynch was actively involved in the area of compliance and ethics as a consultant. Prior to that, he worked at British Petroleum (BP) for eighteen years in various management positions, including Director of Global Ethics and Compliance. While at BP he also served as Deputy General Counsel and General Counsel for the U.S. where he oversaw BP’s response to the legal challenges posed by the Deepwater Horizon case.
“CITGO’s operational success is only possible with a world-class compliance program designed and implemented to meet the highest ethical standards,” said Carlos Jordá, CITGO’s CEO. “Jack’s leadership and vast experience in regulatory and ethical compliance is key to continuing our work of making sure CITGO and all of its employees operate under the highest ethical standards.”
“As a Board of Directors, we have focused on making sound corporate governance a fundamental cornerstone of our management,” said CITGO Petroleum Corporation Chairman of the Board, Luisa Palacios. “The company is committed to effectively achieving and improving compliance and existing controls and we have already taken corrective action to ensure that these standards are met. Jack’s knowledge of the complex issue of corporate compliance, in addition to his impressive track record, is a tremendous strength to the company’s operations and employees.”
“I am honored to have the opportunity to build on CITGO’s historical successes,” said Lynch. “I look forward to working with my colleagues to examine and strengthen the company’s processes and procedures, as well as to designing new programs that promote our commitment to ethical conduct, compliance and corporate governance.”
Following his appointment in February last year, the Board of Directors of CITGO Petroleum Corporation established three primary objectives for the company: improving financial and operational stability; protecting assets; and improving corporate governance. CITGO has made significant progress in each of these three areas:
⁃ Carlos Jordá, a refining industry veteran with 45 years of experience in the business, was named CEO after an extensive and thorough selection process.
⁃ Through a competitive process, CITGO hired outside companies to conduct a comprehensive review of the company’s regulatory compliance system and a comprehensive audit. As a result of the audit and review, the Board unanimously decided to restructure the Vice President of Shared Services and eliminate the proxy function for the company’s shareholder.
⁃ Under the leadership of the new Board, CITGO Petroleum Corporation and CITGO Holding, Inc. completed a successful refinancing of 70 percent of the total aggregate debt. As a result, Fitch Ratings upgraded the credit rating of CITGO Holding, Inc. and reaffirmed the rating of CITGO Petroleum Corporation with a stable outlook.
⁃ Recently, last December, the company reported a strong operating performance that allowed for an increase of approximately 20,000 barrels per day (bpd) in refining capacity. This is the second increase in refining capacity for the company in the last 20 years. CITGO also had one of the best years in its history in terms of safety and environmental performance, which are core values of the company.