…fuel tankers go missing after fuel diverted to longer route
..cartel targets Matola, Kachaje with smear campaign
…Chakwera hires Buluma and others to help
The all-powerful fuel procurement cartel has been sidelined by President Lazarus Chakwera and after failing to account for the K60 billion (US24million) of the K125 billion (US$50 million) obtained in October from the Arab Bank for Economic Development in Africa (Badea) to ease the now month-long fuel shortages. The cartel is now targeting Energy Minister Ibrahim Matola, and MERA CEO Henry Kachaje who have been tasked to reverse the crisis.
The Investigator Magazine can reveal that up to K60 billion the Reserve Bank gave to NOCMA in October has gone missing as only K65 billion (US$26 million) was paid to suppliers and tankers loaded with fuel for Malawi have gone missing or have appeared in Zimbabwe under orders of NOCMA Board.
Matola and Kachaje are chairing coordinating teams set up by President Chakwera, whose image is in tatters as pumps have been drier for longer than any other period, but their appointments alongside Chief of Staff Prince Kapondamgaga, former CEO For NOCMA Hellen Buluma and Reverand Zac Kawalala seems to have rattled those that have been benefitting from looting at the NOCMA.
Fuel, fertiliser and energy sector procurements have been riddled with corruption that the current crisis including the missing billions are part of the coordinated looting for an institution that is Chaired and controlled by Secretary to the President and Cabinet Colleen Zamba.
The genesis of NOCMA woes
Trouble for the state-owned fuel agency can be traced to when SPC Zamba loaded the Board with loyalists and friends allowing her to control it and push the preferred suppliers to be prioritised at all times.
“By August the country had fuel for one day cover. Reserve Bank pumped money, at times in cash up to 10 million dollars. This money never reached suppliers. The RBM has tried to ensure forex for priority sectors like NOCMA is available, but there is a black hole, a big black hole at NOCMA,” explained a source familiar with the mess.
While regular suppliers were being denied their money, Zamba, Transport Minister Jacob Hara, Secretary for Energy Alfonso Chikuni, and NOCMA CEO Clement Kanyama were creating two companies to get fuel contracts. The fake Sheikh Ahmed Al Qassimi firm and the GET Global only known to Hara and Zamba.
The two companies were touted as accepting to be paid Malawi kwacha, but the initial fuel was paid for by Malawians and another 2 million litres from DR Congo.
Zamba, missing fuel tankers, fake Sheikh and Jacob Hara’s company
For an unexplained reasons NOCMA through influence of Zamba started using the Beira -Zimbabwe oil pipe line which added the distance to 150km longer to Feruka in Mutale, Zimbabwe where tankers would load for Malawi and some would disappear.
The Investigator Magazine has been informed that some of the fuel was sold in Zimbabwe while other tankers disappeared in Thete meaning millions of litres from Congo and those paid for by Malawian taxpayers.
Our analysts have concluded that Zamba, Kanyama and Hara intended to use the missing fuel to supply under the fake Sheikh Al Qassimi deal and that of GET Global whose local attached signatories were people known or attached to the three.
“NOCMA in short has been buying fuel outside the set contracts that is why the problem is persisting. The talk of Malawi kwacha was for them to get the money for the same fuel the taxpayer is using. They miscalculated again and now the crisis has sent the President to act without them,” said our source.
But its not only NOCMA in a care free mode, but the Ministry of Finance as well.
Creditors refused to loan Malawi, 20 people travel shock banks
President Lazarus Chakwera is either clueless or he has no capacity to police his appointees as after the crisis started, he received memos from SPC and Minister of Finance Simplex Chithyola on a proposed tour to visit a few countries and institutions where drama was unfolding.
First was the size of delegation as up to 20 officials travels comprised of the OPC, NOCMA, Treasury, MERA, Energy, Trade and Foreign Affairs to the amusement of the hosts as the country was reeling from shortage of forex.
“20 people alone was excess, but going 20 people blowing thousands of dollars to beg for the same reflected the thinking capacity of this administration,” charged someone who met the team in transit.
Chithyola Banda was told by the Trade and Development Bank (TDB) formerly PTA bank of Comesa countries that he could not get any loan as Malawi had defaulted on several loans including the Malawi Leaf money that went burst.
“The TDB had only two officials, but Malawi had 20 people, with almost 18 saying nothing during the meeting. There is no control of what really happens in this government. But they were offered forms to restructure the debt and be able to qualify. The Malawi delegation forgot the forms on the table, that is 20 people and has since not returned to TDB for assistance,” explained another official familiar with the tour.
When the delegation went to meet Badea, it was also initially refused.
Energy Minister Matola saved the situation, NOCMA reneged on arrival
The Badea team refused to give funds to Malawi and based on his defaulting other loans, but Energy Minister Ibrahim Matola who studied who is fluent in Arabic and has connections with Saudi Arabia where he lived sometime engaged extra officials on the emergency loan.
“A lot of people played roles, but the Minister of Energy was all over calling and talking to different officials until the Badea team accepted to release the US$50 million,” said a public service official on the delegation. We could not get hold of Matola.
Another official said Badea gave the forms for Malawi to start buying fuel straight from the refinery owned by Saudi government-Saudi Aramco- which could be cheaper and cut off corruption and middleman. The forms were to be handled by NOCMA. But this could not suit their agenda, hence they never applied
US$50 million, RBM cash goes AWOL, No fuel
The Badea funds arrived at Reserve Bank of Malawi and was given to NOCMA alongside US$15 from Malawi government- the funds only US$26 million has been paid to suppliers and NOCMA has failed to explain the whereabouts.
“Someone took the US$10 million cash from Reserve Bank, no fuel came from it. NOCMA cannot show the fuel or the volumes. Suppliers that have been paid totals only US$26 million leaving US$24 million unaccounted for. This has never happened. NOCMA has zero in its accounts,” said another senior official from OPC.
However an official from NOCMA explained that immediately money arrived Zamba and Presidential aide Ephraim Chibvunde, CEO Kanyama and Energy PS Chikuni all made different trips outside Malawi to seek for suppliers.
“It was like Christmas come early, I am not surprised. They travelled to search for fuel when we could have just cleared the arrears and get the product. The whole mess is because the cartel wants a cut from the fuel suppliers. Now the money has disappeared,” explained another NOCMA official.
The more money is pumped into NOCMA the more fuel goes missing. Finally, the President woke up to reality, something was amiss. The President wants a forensic audit.
Chakwera wakes up, starts acting to solve the mess
The President during his UN General Assembly tour is said to have engaged with Kenya’s President William Ruto who advised him that only government to government fuel systems was safe as it cuts out middlemen and reduces corruption.
Kenya Government signed an MOU with Malawi Government early this month and using its importer OMOR fuel is expected to start flowing early December which could save Malawians from the misery that crisis has caused.
The President has also set up multi stakeholder structures, effectively taking lead in fuel supply and making NOCMA part of the team instead of allowing it to lead as has been the case.
This has caused consternation among members of the cartel who, after messing up fuel supplies are financing underground calls to have Matola and Kachaje fired. However, The Investigator Magazine analysis shows that the two have been sidelined by NOCMA on fuel procurement which has been making decision unliterally and SPC Zamba has been giving orders to which suppliers should be paid.
Buluma recalled, Presidential Advisory Team on Fuel Supply
President Chakwera has set up three tier structure to address the fuel crisis and find permanent solutions and the main cabinet team is Chaired by the President himself with Treasury, Energy, Trade, Foreign Affairs, NOCMA, NOCMA and MERA.
The President has appointed Matola as coordinator at Cabinet level and Kachaje at technical level a development that has led to the two suddenly being accused as reasons behind the fuel crisis, ironically leaving out NOCMA and its bad deals.
President Chakwera has also rattled the powerful oil barons by bringing back Hellen Buluma, former NOCMA CEO who openly implicated Zamba in shoddy fuel deals, alongside Pentecostal cleric Reverend Zac Kawalala and some senior State House officials such as his Chief of Staff Prince Kapongamgaga.
“The teams have already signed an agreement with Kenya and others with Abhu Dhabi and UAE refineries. Fuel from now on will be government to government supplies. This is to save the country from what has happened so far,” said a source to The Investigator Magazine.
As the new systems start to work, Malawians will continue to experience fuel supplies instability- thanks to those that were entrusted with billions of kwachas that have evaporated.
A rare Kudo’s to President Chakwera- Editors View
We rarely heap praise on people for doing their jobs, but in a rare case like the ongoing fuel crisis, we are happy that President Chakwera is showing leadership which has been lacking as things have gone down in the past four years. It might be too little too late to save his reputation which is in tatters- thanks to people he entrusted to help him run the country.
Solutions to Malawi problems are well known, one of them is to stop corruption, channel funds to appropriate channels and appoint the right people in right places. We would be happy to publish the Minister of Finance memo to the President on how he forgot very serious national documents on a table.
Such national embarrassments, defaults and wastefulness where 20 people travel to meet two people has reduced the Chakwera presidency to look like cartoons.
We are happy he is showing some leadership, but he knows the bad apples of his administration. Unless they have something to hold him from making right decisions, being brave and bold like bringing Buluma back could be a good starting point- bring qualified and honest characters like Matola more to ensure the little from taxpayers does not end up in pockets of the few.
For now, bravo Mr President, we hope and pray fuel queues disappear soon.
