Amid the fuel crisis in the country, government recently signed a memorandum of understanding (MoU) with Kenya on fuel importation, but left out key Capital Hill policy stakeholders.
Insiders confided in this paper that the arrangement has raised concerns about lack of transparency and inclusivity of the negotiation process after key officers from Capital Hill were sidelined during signing of the agreement.
The government-to-government agreement was signed on November 5 2024, in Kenya by Minister of Energy Ibrahim Matola, accompanied by State Residences chief of staff Prince Kapondamgaga while Cabinet secretary for Energy Opiyo Wandayi signed on behalf of the Kenyan government.
According to sources, the new deal has also seen former National Oil Company of Malawi (Nocma) acting chief executive officer Helen Buluma appointed to chair an advisory team addressing the on-going fuel crisis in the country, which has persisted for over a month.
Buluma did not respond to our inquiry sent to her WhatsApp line on the new role and the progress made by her committee.
In September 2022, Ombudsman Grace Malera directed the Nocma board to nullify Buluma’s contract, citing unlawful, irregular, and unprocedural recruitment.
Matola did not respond to our questionnaire sent on Wednesday, but indicated that the ministry’s spokesperson was handling it while other government officials were tight-lipped on the deal.
When contacted this week for details about the fuel deal with the Kenyan government, Kapondamgaga referred this reporter to Matola for comments.
On his part, PS for Energy Alfonso Chikuni also asked this reporter to engage Matola or officials at Malawi Energy Regulatory Authority (Mera).
Mera CEO Henry Kachaje said government was better-placed to comment. He did not specify.
Both Nocma board chairperson Colleen Zamba, who is also Secretary to the President and Cabinet (SPC), and Nocma CEO Clement Kanyama were not readily available for comment.
But in a telephone interview yesterday, Attorney General (AG) Thabo Chakaka-Nyirenda, referred to Section 89(1) (f) of the Constitution, which states that the President has the powers and duties “to negotiate, sign, enter into and accede to international agreements or to delegate such powers to ministers, ambassadors, and high commissioners.”
Tweeting on the day the MoU was signed, principal secretary for the State Department for Petroleum in Kenya, Mohamed Liban, said: “The agreement is set to strengthen both countries’ petroleum sectors and ensure a stable supply of refined petroleum products, supporting economic prosperity for Kenya and Malawi.”
Liban added that the MoU will remain valid for five years or until terminated by either party in accordance with its terms.
Some Kenyan publications have reported that the partnership follows high-level consultations between the Presidents of Kenya and Malawi at the United Nations General Assembly in New York, USA, in September 2024.
Our sources corroborated that key officers in the energy sector, namely Zamba, Kanyama, Chikuni and Kachaje, by virtue of their positions, only learnt about the agreement a week after it was signed.
“The first meeting took place at Kamuzu Palace in Lilongwe on November 15, where officials were briefed about the agreement, and three committees were announced, the ministerial—chaired by Matola; technical chaired by Kachaje, and advisory committees whose chair is Buluma,” said the source.
The source said the second meeting took place on Monday this week.
According to another OPC source, both meetings were attended by Minister of Trade Sosten Gwengwe, Minister of Finance Simplex Chithyola-Banda, Minister of Justice Titus Mvalo, their directors, the AG, Reserve Bank of Malawi Governor Wilson Banda and other officers from the central bank.
The ministerial committee, chaired by Matola includes Gwengwe, Chithyola-Banda, Mvalo and Zamba. The technical committee, chaired by Kachaje includes Nocma deputy CEO Reuben Micklas, Chikuni, PS for Transport, and PS for Foreign Affairs.
Other members of the advisory committee are Kapondamgaga and Pastor Zacc Kawalala.
Commenting on the arrangement, energy expert Grain Malunga said that the government needs to regularise the fuel import deal by ensuring that all policy-holders are on board and that proper procedures are followed.
Said Malunga: “It is irregular for the government to keep policyholders in the dark on such a big deal. This arrangement requires all hands on deck to be effective.
“This is not a letter of intent but a binding document. The government should not be careless but must ensure that offices such as that of the PS for Energy are leading the process and providing strategic direction.”
Weighing in on the issue, a senior official in the energy sector, who spoke on condition of anonymity, expressed concern that the hiring of Buluma might cause friction within the committees due to her controversial exit from Nocma.
Said the official: “The government should have avoided controversy by selecting individuals like former Mera CEO Collins Magalasi or former Nocma chairperson Gift Dulla, who demonstrated some level of success in handling similar crises.”
Another source familiar with the deal revealed that the government is considering abandoning existing fuel contracts under Nocma with Camel Oil, Hass, and Addax in favour of government-to-government arrangement.
“The big question now is how the government will manage the current suppliers, who have been providing fuel on open credit and are owed over $35 million, after a recent payment of $50 million,” the source said.
The source also pointed out that the MoU does not clearly outline how the government will secure the funds to pay for the fuel, given the prevailing foreign exchange shortages.
