Mera officials closing down Petroda Filling station
By Dorica Mtenje
LILONGWE(MaraviPost)-Malawi Energy Regulatory Authority (MERA) on Thursday, October 20, 2022 closed down Salima Turn-off Petroda service station in the capital Lilongwe following investigation that the station attendant correcting extra money from customers while fueling jerrycans.
In an interview with The Maravi Post on following the closure, MERA Consumer affairs Officer, Vitumbiko Sakala said Arafat Mustafa a fuel attendant at the station was overcharging customers and demanding tips for them to be sold fuel in jerrycans.
Sakala said the conduct is contrary to Production and supply act of the Liquid fuels and Gas as the comduct undermines effort to equitable distribution and access of fuel to the public.
He said the Authority pursuant to section 23 of the Liquid fuel gas production supply act and Regulations 11 which directs them the closure of Salima turn off Petroda service station.
The filling station received 14 days warning before the closure.
Meanwhile the opening of service station will be subject to satisfactory implementation of measures taken to avoid re-occurance of the malpractice.
The Malawi Energy Regulatory Authority (Mera) has been taken to task by the Public Appointments Committee (PAC) of Parliament over ‘dubious’ appointment of Henry Kachaje as chief executive officer (CEO).
Henry Kachaje, who is indisputably a loyalist of the governing Malawi Congress Party (MCP), took the highest position at Mera in August this year under the pretext that she outclassed the other interviewees.
However, it is being alleged that Kachaje, a renowned economist in the country, does not possess the minimum qualification for the position as indicated in the advertisement for the vacancy.
As reported by The Nation, PAC has summoned Mera board chairperson Leonard Chikadya to a meeting on November 3, 2021 to answer questions on the process leading to Kachaje’s appointment as Mera CEO.
In the letter, PAC chairperson Joyce Chitsulo also requested Chikadya to submit academic certificates the Mera board used to shortlist Kachaje.
“The documents should be received by October 22 2021,” reads the letter, in part as quoted by The Nation.
Besides PAC’s query, the Office of the Ombudsman has also launched a public inquiry into the allegations of unprocedural recruitment of the former Economics Association of Malawi (Ecama) president.
The Comptroller of Statutory Corporation floated an advertisement in the newspapers in December last year, inviting applications from interested Malawians with a minimum education qualification of a master’s degree in either engineering, economics/finance, law, science or management.
Mera board short-listed eight applicants including Kachaje from the long list of 92 who were invited for interviews from where Kachaje emerged the best interviewee.
Kachaje was then offered a three-year contract to be at the helm of the parastatal. He reported for work on August 24 2021.
However, three days later, the Parliamentary committee, through its chairperson, wrote Mera board chairperson Leonard Chikadya demanding an explanation on how Kachaje was appointed CEO when he “did not meet the minimum qualifications”.
According to PAC’s communication, dated August 27 2021, the committee ordered Mera board chairperson to submit a written explanation on Kachaje’s appointment to the Clerk of Parliament (CoP) by September 3 2021.
But Chikadya, in his response to PAC’s letter, defended Kachaje, arguing that the board settled for him because he performed outstandingly and emerged as the best candidate based on qualitative and quantitative assessment.
According to Chikadya, the interviews were conducted by the full Mera board and witnessed by representatives from Statutory Corporations and the Department of Human Resources Management.
Before PAC wrote the Mera board, the Forum for National Development (FND) had already written the Anti-Corruption Bureau (ACB) requesting them to investigate Kachaje’s appointment.
In its letter, dated August 25 2021, FND alleged that Kachaje got unfair advantage over many other Malawians who could have applied for the job if Mera was honest with its requirement.
However, ACB director general Martha Chizuma after reviewing the complaint and request referred FND to the Office of the Ombudsman to handle it.
Ombudsman Grace Malera has since launched a public inquiry and has invited FND executive director Fryson Chodzi to an initial inquiry slated for October 21.
“You are at liberty to bring documentary proof or witnesses that will support your assertions. Take note that you are also free to be accompanied by legal counsel or not,” reads Malera’s letter addressed to Chodzi, dated October 4 2021.
In an interview Wednesday, Chodzi said they took the matter on Kachaje’s qualification to ACB after being tipped by a whistlebower, saying they are set to attend the public inquiry and present their case.
“This matter should have been dealt with easily through proof of qualification and experience of the appointed CEO,” he said.
Former Ombudsman Chizuma cancelled out several appointments in public institutions due to irregular recruitment processes, although some of them challenged the decision in court.
Truck drivers protesting against unfair working conditions
The past two days have been enough evidence as to whether or not everyone, in their industry, is important. Truck drivers who enable automobiles in the cities and towns to make mobility easier, purposefully chose to prove their substance.
Out of reasonableness, they stack to their guns, demanding pay hike for them to do their work; not only happily, but satisfactorily at the same time. They also asked government to reduce passport renewal fee so that their industrial life would be more worthwhile. Failing which, they really made it clear they would not go back to the road.
This was a necessary evil way of having their grievances attended to because barely three days after they stopped operating, the nation was halted to a standstill as there was literally no fuel to keep the transportation industry operational. And surely, everything else was slowly but surely crumbling as business was no longer the usual.
It was very clear that government, through Malawi Energy Regulatory Authority (Mera) was simply being economical with truth by telling the public that there was sufficient fuel in the reserves to save the country for at least a month, when that was just one of those blue lies.
As government was sitting somewhere playing hide and go seek games with the truck drivers’ worries whilst enjoying authority, an innocent poor expectant woman at a health centre located somewhere in the middle of nowhere was at the verge of losing her life while willing to give birth to another life; surely because an ambulance at a district hospital thereto was unable to speed to the lower hospital to ferry and save the two lives as it had no kinetic energy in form of the essential liquid commodity. How unfortunate!
Evidently speaking, it is high time every industry was regarded and treated as an equal piece of the entire jigsaw puzzle; of which without it, the other pieces would not successfully connect to form one fully functional economy. As a matter of fact, Malawi is a landlocked country without any minerals. And for so many years, we have deliberately frustrated the Naccara Corridor project out of political pride; such that transportation of fuel into the country through trains would be the easiest way.
It is an open secret that fuel is the determining commodity of our economy. When its price goes up, every other commodity’s price follows suit. That being the case, the transporters of the precious resource ought to be treated as importantly as medical doctors, lawyers, and largely the politicians seated in the Parliament are!
BLANTYRE-(MaraviPost)—Parliamentary Committee on Natural Resources and Climate Change has predicted a possible fuel crisis in the country following delays by National Oil Company of Malawi (NOCMA) to buy the product.
Chairperson of the Committee, Welani Chilenga, revealed this when presenting a report in Parliament on the process of procurement of fuel by the National Oil Company of Malawi and the role of Malawi Energy Regulatory Authority (MERA).
In the report, MERA has been accused of not only influencing NOCMA on companies to be included in the supply of fuel but also forcing NOCMA to change the way of importing fuel.
The committee believes some senior officials are behind MERA’s influence on NOCMA in order for them to benefit from procurement of fuel and that has seen delays in procurement of fuel.
The fuel procurement process which was initially supposed to take four months has taken eight months.
The committee fears that the delays have the potential to lead into a fuel crisis.
It has since recommended that NOCMA should proceed with the procurement of fuel and that MERA should operate as a regulator and not suggesting fuel suppliers to NOCMA.
The committee has also recommended that Anti-Corruption Bureau should investigate the matter and prosecute.
The report further calls on appointing authority to consider reviewing the MERA board following the mess that has been recorded.
The committee has also said the blocker system in the transportation of fuel is not supported by law but it is negatively affecting Malawian transporters.
The committee has since recommended that Malawian transporters should be allowed to operate without challenges.
Escom officials in a meeting with Parliamentary Committee on Natural Resources and Climate Change
BLANTYRE-(MaraviPost)—In a clear display of arrogance, Electricity Supply Corporation of Malawi (ESCOM) went ahead with their greedy decision to hike electricity tariffs despite Malawi Energy Regulation Authority (Mera) advising them to put the adjustment on hold.
This has been revealed during an interface with the Parliamentary Committee on Natural Resources and Climate Change today Tuesday 27th April, 2021.
According to Welani Chilenga, the committee’s chairperson, Escom officials told him earlier that the increase was made to bail out the institution from its financial quagmire, and based on the minister of energy’s statement in parliament.
Escom officials have meanwhile failed to produce the statement that the minister allegedly made, which the Committee demanded.
The revelation has left some members of the Parliamentary Committee surprised.
One of the members, Kamlepo Kalua, has described the move and explanations by Escome as “useless” to discuss.
The Committee says it is perplexed on why Malawians should be bailing out people or institutions that are messing up things in their institutions.
Ironically, Mera Consumers Affairs and Public Relations Officer Fitina Khonje told journalists that the decision to hike electricity tariff was made during the electricity tariff review meeting held in February this year.
Khonje also said apart the depreciation of the Malawi Kwacha against major foreign currencies; Mera approved the adjustment to allow ESCOM to carry out its functions effectively.
“The adjustment of the electricity tariff comes about because of two main issues. The first one is that out review of the electricity tariff using the automatic tariff adjustment formula necessitated that the tariff be adjusted upwards by 5.72 percent.
“The formula is applied every month and the aim is to reinstate or restore the value of the tariff that was already agreed on. The second factor is on the based tariff that was agreed to run from 2018 to 2022 and we started implementing in 2018. In 2020, the review showed there should have been an adjustment of tariff based on the based tariff trench,” she explained.
It is yet to be known where Khonje got the powers to comment on the matter in total agreement with Escom while Mera says it did not approve the adjustment.
BLANTYRE-(MaraviPost)—Journalists drawn from different media houses in the country were on Monday updated on the trends on petroleum pricing by Consumers Association of Malawi (CAMA) in collaboration with Malawi Energy Regulatory Authority (MERA) as the countries across the world are still feeling the negative impact of Covid-19 spike.
The novel coronavirus, which Chinese authorities first reported to the World Health Organization (WHO) on December 31, 2019, has been confronting the petroleum exporting countries with both a negative supply and demand shock resulting in fluctuation of petroleum of prices.
For the past few months, Malawi has been witnessing a decrease in petroleum prices following a plunge in oil prices on the international market, a situation which was attributed to the continued spread of Covid-19 which has led to a global slow-down of economic activities which has depressed the demand against the supply of oil.
The decline in oil demand has been particularly significant as oil is mainly used in the transportation sector, and business closures, declines in domestic and international travel, and the lockdowns and quarantines in many countries have all shrunk the demand for oil.
However, as countries continue lifting travel bans, it is projected that prices of oil on the international market will soon start increasing due to a boom in demand as the transport sector, the main user of petroleum, will resume operations.
It is against this background that CAMA in collaboration with MERA thought it proper and necessary to update the country’s journalists on the trends on petroleum pricing amid Covid-19 by organizing a one-day workshop.
During the workshop, which took place at Mount Soche Hotel, CAMA executive director John Kapito challenged journalists to do more research on petroleum pricing so as to make sure that Malawians get the right information
Kapito lamented the tendency of journalists who take pleasure in writing stories about fuel hike without giving proper background on the same.
“There has been a tendency of ignoring the fuel prices reduction among many journalists in the country. When MERA reduces pump prices it’s not news. It is only news when prices go up. This is bad.
“As journalists you must be equipped with factors that necessitate fuel price adjustment. That is why today we are here together with MERA secretariat to discuss the issue of fuel pricing as we are confronting the Covid-19 pandemic which has also hit our economy hard.
“To have an in-depth understanding of how the market is operating and convey messages to the masses accordingly, journalists should be aware of the trends on the international market,” Kapito said.
Kapito said the prices of fuel in Malawi are also affected by the routes that are used to import the commodity.
He noted that 50 percent of the commodity come into the country through Dar-es-Salaam, 30 percent through Beira while 30 percent is comes through Nacala.
“At the moment we are using expensive routes like Beira and Dar-es-Salaam. It could have been cheaper if we were importing a greater percentage of fuel through Nacala,” he said.
Taking his turn, MERA’s Director of Economic Regulation Chimwemwe Dunkalo said the reduction in fuel prices in the past months was due to stability of Kwacha and sharp decrease in demand for the commodity as people were not travelling, business shut down and low production.
“MERA assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices. For instance, in May this year it was noted that the landed costs of petrol, diesel and paraffin decreased by 37.50%, 19.89% and 41.49%, respectively and that according to the Automatic Pricing Mechanism (APM) all the three products qualified for a price adjustment since the changes in their landed costs were beyond the ±5% trigger limit,” said Dunkalo.
Dunkalo said while fuel pricing mechanism is a complex issue, journalists have a role to interpret the trends for easy relaying of information to consumers.
“It is up to the media to look for information. The prices are reviewed every month and that is where the media could generate more questions for the benefit of the audience,” said he.
Dunkalo also said MERA uses Price Stabilization Fund to help fuel importers to remain in business otherwise they could be forced out business or the prices would go higher beyond Malawians’ reach.
He said MERA requires at least K5 billion in form of stabilization fund to cushion fuel importers against loses when the prices changes on the international market do not reach ±5% trigger limit in respect to Automatic Pricing Mechanism.
This year only, MERA has revised fuel prices downwards three times.
However, the cost of transportation has remained constant high due to minibuses and buses capacity reduction as one way of containing the Coronavirus.
Chimwe Dunkalo: MERA’s Director of Economic Regulation
Malawi energy body rules out fuel price hike amid rising international price
BLANTYRE-(MaraviPost)—Fuel prices in Malawi will not be increased despite rising oil prices on the international market as the Malawi Energy Regulatory Authority (MERA) has committed to cover any anticipated importation loses by the fuel importers with Price Stabilization Fund, MaraviPost has learnt.
In a press statement, Friday, made available to the MaraviPost, MERA says the average FOB (Free On Board) prices of petrol, diesel and paraffin increased in the month of June 2020 by 111.93%, 77.1% and 155.32%, respectively when compare to the average prices which were applied when determining the ruling prices.
According to MERA, the increase in the FOB prices on the international market is attributed to output cuts by the OPEC+, and increased demand of oil following the easing of COVID-19 lockdown restrictions in consuming countries.
“MERA assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices. It was noted that the landed costs of petrol, diesel and paraffin increased by 44.89%, 28.69% and 51.04%, respectively.
“Therefore, in line with the Automatic Pricing Mechanism (APM) all the three products qualified for an upward price adjustment since the changes in their landed costs were beyond the ±5% trigger limit. However, the MERA Board resolved to maintain pump prices at the current levels and that any anticipated importation loses by the fuel importers will be covered by the Price Stabilization Fund,” reads the statement partly.
This means that prices of Petrol, Diesel and Kerosene will remain at K690.50, K664.80 and K441.70 per litre respectively.
LILONGWE-(MaraviPost)-Malawi Energy Regulatory Authority (MERA) on Friday, June 19, 2020 donated Covid-19 related materials to Lilongwe District Health Offices at Bwaila Hospital amounting to MK10 million.
The donated items including mattresses, thermometers, sprayers, protective gear to enhance hygiene and sanitation practices just to mention a few.
During the hand over ceremony, MERA Board Chairperson Rt. Rev. Dr. Joseph p. Bvumbwe said Covid-19 is a real threat to health and the economy and that in this crucial time, the role and efforts of healthcare workers cannot be overemphasized.
“This pandemic has affected most spheres of life and almost every industry. Covid-19 is a test to many established systems and mechanisms and to the ability to work together in the face of a common challenge. Covid-19 has put a spotlight on the vital and Noble work of the health workers.”
“There is need for proactive measures and practices to minimize the chances of exposure and contracting the virus. We don’t know for how long we will live with this virus. We cannot predict what will happen next but for sure we need to keep the spread on check and we need to adapt to changes as the situation demands,” he explained.
Speaking on behalf of the DHO, Lilongwe District Health Office; the Director of Health and Social Services, Dr Alinafe Tambala lauded the timely support saying will help facility team to stay protected and disinfect the surfaces and the Vehicles.
On his speech the MERA Chief Executive Officer-CEO, Dr. Collins Magalasi said MERA decided to make the donation as part of contribution that as a cooperate body have to their society.
BLANTYRE-(MaraviPost) – The country’s motorists will not need to dig deeper in their pockets. This follows the Malawi Energy Regulatory Authority’s (MERA) decision to retain the country’s current fuel prices, despite global pump increases.
This should make malawi motorists expel a sigh of relief ahead of the four-day Easter holiday, that starts with the Christian commemorations of Good Friday, culminate with Easter on Sunday, and Easter Monday.
This the whole week motorists will have double celebrations with their pockets being kept on check, as goods and services will not go up.
MERA has therefore, upheld the pump prices of petrol at MK824.70 per litre, MK815.80 per litre for diesel, and paraffin at MK648.70 per litre.
In a press statement released on Monday, and made available to The Maravi Post, signed by MERA board chairperson Reverend Joseph Bvumbwe, informs that the average Free On Board (FOB) prices of all fuels, increased when compared to the average obtained in October 2016.
The development has therefore, been used to determine the current fuel prices that saw petrol, diesel and paraffin increasing by 1.21 percent, 2.64% and 1.32% respectively, in the month of March 2017 when compared to FOB prices obtained in October last year.
MERA said it assessed the combined effect of the movement of the FOB prices, and the exchange rate of the Malawi kwacha to the US dollar, as well as changes in local factors that determine the maximum pump prices.
“This must be noted that the landed cost of petrol, diesel, and paraffin increased by 4.10%, 8.50% and 9.45% respectively. The changes in the landed costs qualified all fuel for an upward pump price adjustment.
“The MERA board considered the accumulated Price Stabilization Fund (PSF) balance in April 2017, and has therefore resolved to maintain fuel pump prices by covering in full the In Bond Landed Cost (IBLC) increases through use of the PSF. Fuel operators, are therefore required to sell petroleum products at prices not exceeding these maximum pump prices,” reads the MERA statement.
Malawians should expect more economic tough times ahead warn economists as the prices of goods are expected to go up following the latest move by the Malawi Energy Regulatory Authority (MERA) to hike fuel prices.
