The Budget and Finance Committee of Parliament says it will invite Secretary to President and Cabinet (SPC) Collen Zamba to hear her side of the story on a ‘questionable’ fuel deal involving His Highness Sheikh Saud bin Saqr al Qasimi of United Arab Emirates.
National Oil Company of Malawi (Nocma) officials were the first to appear before the committee yesterday and according to chairperson Gladys Ganda, the SPC, Malawi Energy Regulatory Authority (Mera) and the Public Procurement and Disposal of Assets Authority (PPDA) will also face the committee.
Zamba was dragged into the inquiry as Nocma chairperson and also because of allegations that she may have a hand in the deal which has raised eyebrows.
“We will also meet Ministry of Transport and the SPC because she has also been mentioned. Not her as a person but the office. Once we are done with the inquiry, we will provide details to the public to appreciate the truth on the matter,” said Ganda, adding they plan to conclude the inquiry by Friday next week.
In its presentation to the committee, Nocma insisted that it did not flout any procedures and that its dealing with the supplier in question was based on an agreement that the Malawi Government signed with the firm.
Asked why the firm was willing to receive payment in kwacha for a contract that would be quoted in dollars, Nocma chief executive officer Clement Kanyama said part of the deal was to provide a bank guarantee before the supply came as an assurance to the supplier.
On single sourcing, he said this decision was arrived at “to resolve impending stockout due to lack of forex”.
Kanyama suggested that Nocma looked at the kwacha payment as an incentive since they were struggling to secure forex for fuel.
On the Ministry of Transport fuel deal, Nocma said it was expected to sign a hospitality agreement with the ministry which was never signed.
“Can you confirm that there is no any transaction between Nocma and HH?” asked Joseph Mwanamvekha, member of the committee and former minister of Finance who raised several questions, just like the committee chairperson.
“CEO we want to give you this space to clear the mist. Are you sure there was no any transaction?” said Ganda.
Kanyama stressed that no transaction has taken place.
