BLANTYRE-(MaraviPost)—Minister of Energy, Newton Kambala, Aford President Enoch Chihana and Presidential aide Chris Chaima have spent another night in police custody in Lilongwe.
The three were in a second day running being questioned by the Anti-Corruption Bureau (ACB) over their alleged role in processes to do with the awarding of fuel supply contracts at National Oil Company of Malawi (Nocma).
The three are expected to appear in court today Wednesday, August 11, 2021.
Kambala is a senior member of UTM, a Tonse Alliance partner led by the Vice President Saulos Klaus Chilima.
On Tuesday, UTM and Aford supporters stormed the ACB offices to provide moral support to their senior officials, a development that startled some Malawians of well frame of mind as to how normal people would rally behind thieves.
However, Frank Mwenifumbo UTM Spokesperson appealed to UTM supporters to keep calm and not flock to ACB offices, saying the Bureau has to exercise its duties without Political interference.
The three were arrested on Monday for their alleged attempt to influence the awarding of fuel contracts at NOCMA.
BLANTYRE-(MaraviPost)—The Anti-Corruption Bureau (ACB) has given National Oil Company of Malawi (NOCMA) consent to award a contract to procure fuel using the ex-tank system.
This follows the completion of an investigation in respect of a suspected offence under the Corrupt Practices Act
The graft busting body suspended the controversy-riddled fuel supply contracts by National Oil Company of Malawi (Nocma) to pave the way for investigations into various alleged anomalies in the process.
But according to a statement released today, the investigation into the suspect offence under corrupt practices Act has been finalized and ACB has consequently given NOCMA permission to proceed with awarding of contracts of fuel under contract number NOCMA/ICB/FUEL/2020/2021.
The Bureau in a statement says the award of the contract under procurement number
NOCMA/ICB/FUEL/2020/2021 should follow the ex-tank method as per the existing High Court order.
The statement signed by ACB’s Director, Martha Chizuma, stresses that NOCMA should comply with the Notice or risk contravening Section 49A of the Corrupt Practices Act.
The ACB’s intervention came against a background of a bitter fight between the boards of Malawi Energy Regulation Authority (Mera) and management of Nocma.
In the thick of the controversy, Human Rights Defenders Coalition (HRDC) asked the ACB to investigate allegations of corruption and abuse of office in the ongoing procurement of fuel supply contracts by Nocma.
Nocma is a State-owned company while Mera is a regulator of the energy industry.
In January this year, the Mera board declined to approve Nocma’s application to award contracts to suppliers it selected, citing concerns of overpricing.
Mera said the contracts were expensive and would cost the taxpayer K45 billion more due to the Delivered Duty Unpaid (DDU) procurement system used. The regulator also claimed that expensive suppliers such as Lake Oil for Northern Corridor and IPG on the Beira Corridor had allegedly quoted higher premiums than other bidders.
But Nocma argued that the DDU system—which mandates the seller to ensure that goods are safely delivered to destination and the buyer is responsible for import duties—reduces risks to the company.
Nocma further argued that Mera simply wanted its preferred suppliers to be selected and that it was acting under political influence.
National Oil Company of Malawi (NOCMA) deputy chief executive officer (CEO) Helen Buluma has been at the centre of controversies at NOCMA
BLANTYRE-(MaraviPost)—As Malawians are still debating shady deals happening at National Oil Company of Malawi (NOCMA), Minister of Energy Newton Kambala has blamed National institution for not being transparent in the fuel imports deals.
Kambala who said this in Parliament on Monday when presenting his ministerial response on the Natural resources committee fuel report, said the country is in this fuel import mess due to lack of transparency.
Kambala also faulted NOCMA for not responding to Malawi Energy Regulatory Authority – MERA that was recommending two new fuel import suppliers.
Kambala who further disagreed with the Natural resources committee on the recommendation that the President should fire the MERA Board said the Committee had no mandate as that mandate is with Public Appointments Committee – PAC upon conducting an inquiry into the competence of the Board.
But reacting, Werani Chilenga Chairperson of the Natural Resources Committee of Parliament said the minister was not supposed to comment on the issue, as it is being investigated by ACB.
He further said the minister is compromised as he has already taken a side on the matter.
The Anti-Corruption Bureau’s (ACB) restriction order on fuel supply contracts by the National Oil Company of Malawi (Nocma) has exposed the watchdog’s indecisiveness having endorsed the deals exactly three months earlier.
Communication Weekend Nation has analysed indicates before suspending the oil contracts to pave the way for investigations, ACB had alongside three other public entities already vetted Nocma’s request seeking a ‘no objection’ to award the contracts.
The other government institutions that cleared Nocma’s request are the Public Procurement and Disposal of Assets Authority (PPDA), Government Contracting Unit (GCU) and the Ministry of Justice. They found the contracts to be in order except for one bidder, according to letters we have seen.
In its letter dated March 12, 2021 and addressed to the director general of PPDA, the bureau said it granted the ‘no objection’ to the contracts in accordance with Section 37(11) of the Public Procurement and Disposal of Public Assets Act.
“I refer to your letter Ref No. PPDA/03/361 dated 2 March, 2021 received by ACB on 5 March, 2021 relating to the above captioned matter, and wish to inform you that we have vetted the request from Nocma seeking a ‘no objection’ to award fuel supply contracts,” reads part of the ACB letter signed by the acting chief corruption prevention officer Susan Mtuwa Phiri.
However, ACB withheld the ‘no objection’ for the fourth bidder known as IPG that was also supposed to supply the products from Beira due to “unsatisfactory premiums” the supplier offered.
But when contacted on the sudden change of decision, ACB director general Martha Chizuma in an interview Thursday played down its earlier position justifying that despite granting a ‘no objection’ the bureau could still institute investigations on the process.
“Usually when the bureau grants such ‘no objection’, it clearly states that it reserves the right to still investigate the procurement in the event new information comes to light that needs further scrutinisation. So the issues raised by the complainants deserve the bureau’s attention,” she stated. Chizuma did not indicate what new information ACB had received to necessitate cancellation of the contracts.
However, Centre for Democracy and Economic Development Initiatives (Cdedi) has described ACB’s sudden change of decision as a “worrisome development” which questions the credibility of people at the bureau and the interests they advance.
Cdedi executive director Sylvester Namiwa said in an interview yesterday the case should serve as a wakeup call to people entrusted to make decisions in statutory and constitutional bodies to always follow the law governing their institutions to avoid “such embarrassing moments”.
He said: “ACB’s credibility is heavily bruised by the sudden change in decision. This is a clear case of shifting goal posts, smacks of double standards and puts to question our resolve to fight and win the fight against corruption.
“We can safely say the rescission of their earlier decision is as a result of public outcry and not basing on the principle and the spirit of the law.”
But procurement specialist Phillip Kamangira welcomed ACB’s decision to freeze the contracts after granting a ‘no objection’.
“Good procurement is impartial and consistent, and should offer all interested suppliers, purchasers and consultants an equal opportunity to compete.
“Therefore, procurement entities must adopt practices that promote fair competition and allow adequate time in the tendering procedure for participating as well as avoid unnecessary burden. These factors may have driven the newly-appointed ACB director to freeze the contract,” he said.
But he observed what had occurred offers a lesson for the need to observe integrity and ethical behaviour.
“The principle is that public servants should not place themselves in positions in which they have or could have conflict of interest or compromise the fair exercise of their public or official functions,” said Kamangira.
Nocma deputy chief executive officer Hellen Buluma declined to comment on the matter yesterday when contacted.
There was no immediate comment from PPDA and GCU but Ministry of Justice spokesperson Pirirani Masanjala said they needed to appreciate particulars of what ACB had done before commenting on the matter.
The ACB suspended the controversy-riddled fuel supply contracts on
Wednesday this week to institute investigations into various alleged anomalies in the process.
The intervention came against a background of a bitter fight between the boards of directors of Malawi Energy Regulation Authority and management of Nocma.
The approved contracts for the supply and delivery of approximately
234 820 metric tonnes (MT) of refined petroleum products (motor gasoline and automobile gasoil) were between Nocma and Lake Oil Limited, Nocma and Dalbit International Limited and Nocma and Camel Oil (T) Limited.
The three successful bidders were expected to deliver the products from Beira in Mozambique and Dar es Salaam in Tanzania (Lake Oil and Dalbit) and Nacala in Mozambique for Camel Oil.
BLANTYRE-(MaraviPost)—The Anti-Corruption Bureau (ACB) has issued a restriction order to the National Oil Company of Malawi (NOCMA) on a fuel supply contract.
Principal Public Relations officer for the bureau, Egritta Ndala, has confirmed this in an interview with local media.
According to Ndala, the graft busting body has issued the notice following several complaints received alleging irregularities and suspected corruption surrounding the fuel procurement process.
Among the institutions that have recently asked ACB to investigate allegations of corruption and abuse of office in the procurement of fuel supply contracts by NOCMA is the Human Rights Defenders Coalition (HRDC).
HRDC felt the award of fuel supply contracts to Lake Oil Limited, Dalbit International Limited and Camel Oil limited was “suspicious,” with strong likelihood of involvement of fraud and corruption.
There has been a tussle between energy regulator Malawi Energy Regulatory Authority (Mera) and Nocma, and in January the former had rejected an application by Nocma to allow it to award fuel contracts to two suppliers from a field of 23 applicants.
In a letter dated January 15 2021 to Nocma, which we had seen, Mera acting chief executive officer Ishmael Chioko wrote: “I am therefore writing to inform Nocma that Mera has declined to approve Nocma’s application.”
Mera’s communication to Nocma meant that the latter could not proceed to seek a ‘No objection’ from the Public Procurement and Disposal of Public Assets Authority (PPDA) to award the two contracts for Nocma’s required supply of 314 830 metric tones (MT) of fuel for the whole 2020/21
Mera’s decline of the proposed awards comes two months after Minister of Energy Newton Kambala cancelled the tenders because Nocma did not have an executive management in place to execute such transactions.
IPG (Independent Petroleum Group) is a group of companies headquartered in Kuwait with worldwide operations in the trading and marketing of crude oil, liquid petroleum and gas (LPG), petrochemicals and fertilisers. In addition to this core activity, IPG has interests in terminalling, pipelines and shipping.
Lake Oil Limited is a Tanzania-based company also with operations in the trading and marketing of crude oil, LPG and petrochemicals.
Mining Minister Rashid Gaffar cornered in a white shirt
BLANTYRE-(MaraviPost)-President Lazarus Chakwera’s Tonse government Mining Minister Rashid Gaffar is implicated in a heinous scam involving the disappearing of about MK3 billion at the National Oil Company of Malawi (Nocma).
It is alleged that between January 2018 and January 2019, MK3 billion worth of diesel (2 million litres) was shared among public officers who worked with the company.
According to a report we have seen, money from the oil proceeds was transferred to the said individuals (names deliberately withheld) at a rate within the range of MK400, 000 to K1.5 million per day, using Mpamba and Airtel Money.
During the same period, Electricity Supply Corporation of Malawi (Escom) lost two million litres of diesel worth MK2.9 billion and it had entered into a contract with Nocma to supply diesel to Aggreko Limited sites, including Kanengo and Kasungu.
This publication understands that Nocma engaged Rashy motors (transport firm) for the transportation of the fuel. Rashy Motors is owned and run by Minister Rashid Gaffar.
The tankers were said to have been dispatched to deliver the cargo to Aggreko sites but according to findings of the investigation, the tankers never appeared in security guard’s register at the Aggreko sites.
“Amount of fuel used to produce Kilowatts was by far less than what was recorded as having been used,” it reads in part.
When approached, one of the senior officials at Nocma, who chose to remain anonymous, confirmed that the said report would form part of a forensic audit at the institution and declined to comment further.
The report on the investigation, put together by a team of investigators from Police, has been submitted to Capital Hill awaiting further action.Director of Public Prosecutions (DPP) Steve Kayuni said he was aware of the issue.
“I can confirm receipt of the file…we shall process opinion and move it forward quickly considering that these allegations bordered on financial crimes, which is economic sabotage…speed is of essence…as adherents of justice and restitution, we shall pursue all financial crimes to conclusion,” he said.
In 2018, the Office of the Ombudsman also launched an investigation at Escom over the disappearance of millions of litres of fuel meant for diesel powered generators.
The nation is expecting President Chakwera’s stance towards corrupt ministers in his administration.
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