Energy
Malawi Parliamentary Committee attacks regulator for interfering with fuel procurement process
May 28, 2021 / Wahard Betha
Malawi’s Parliamentary Committee on Natural Resources and Climate Change (NRCC) has expressed concerned on how Malawi Energy Regulatory Authority (MERA) has handled the fuel procurement process saying it could lead to fuel shortage.
MERA declined to approve National Oil Company of Malawi’s (NOCMA) 2021 to 2022 application to award contracts to suppliers of fuel by the names of Independent Petroleum Group (IPG) and Lake Oil Limited saying they were concerned with the premiums stipulated under NOCMA’s Delivered Duty Unpaid (DDU) which in MERA’s view were not competitive and not transparent.
But reporting to the General Assembly following consultative meetings it conducted with MERA, NOCMA and other stakeholders, NRCC committee Chairperson Werani Chilenga told the house that MERA’s action on the matter indicated that as regulators they intended to prolong procurement period.
Chilenga said: “The Committee, however, is concerned that MERA’s action shows that it wants to prolong the delays in the procurement process of fuel.”
“The Committee is, therefore, concerned that such acts are a recipe for a possible fuel crisis in the country which could translate that government has failed.”
“The Committee is therefore concerned that MERA and some officials who are benefiting in the current saga may stir problems for the government.”
Considering that the fuel procurement process has taken over eight months instead of four months, and based on the approvals from Public Procurement and Disposal of Assets (PPDA), Anti-Corruption Bureau (ACB), Government Contracting Unit and Ministry of Justice, Chilenga said the committee has recommended NOCMA to proceed with necessary administrative arrangements within the law to proceed with the procurement of fuel.
Understanding that Malawian Transporters have been suffering due to the brokerage system that is not supported by any law, the committee has also recommended that Malawian Transporters should be allowed and supported by oil companies to operate without the brokerage system.
Chilenga also said the committee has also directed MERA to be operating as a regulatory body and follow the law and not meddle in the procurement process.
“That due to the damage caused by MERA for the past eight months in delaying the fuel procurement process, the President should consider dissolving the MERA Board; and that the Anti-Corruption Bureau should investigate the claims already submitted by NOCMA on the November 6, 2020 as soon as possible,” Chilenga said.
On November 26th, 2020 NOCMA submitted to the Anti-Corruption Bureau reporting all authorities that had a hand to influence the fuel procurement process.
Meanwhile, 100 percent of NOCMA’s transport business under DDU is given to local transporters on Beira Route.
NOCMA’s 2021 arrangement which was supposed to be implemented in March, 2021, will see 87 percent of NOCMA business on transportation for Beiraand Dar es Salaam given to Malawian Transporters. The oil company uses DDU to ensure security of fuel supply in the country even when there is a financial challenge for the company as NOCMA still procures and only takes responsibility of the product at a later stage when the product is in its reserves.
Share this:
Leave a Comment
Comments
Mining & Trade Review News
Agribusiness News
Subscribe to Newsletter
Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
Archives
Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
Stakeholders Logos
