Secretary to the Treasury (ST) Ronald Mangani has demanded that the K3 billion ($4.2 million) Malawi Energy Regulatory Authority (Mera) used to buy maize from the Price Stabilisation Fund (PSF) be refunded.
Treasury has also demanded immediate suspension and prosecution of key officers at the regulatory authority for ill-advising the board of directors to divert the money to buy maize for State produce trader Agricultural Development and Marketing Corporation (Admarc) in February this year.
Mangani’s letter dated May 19 2016 addressed to Mera board chairperson Bishop Joseph Bvumbwe said the executive management of Mera “erred” in referring to the Mera Board a matter that was outside the board’s competence and mandate to handle, sayin it is the responsibility of management to guide the board on procedures.
He added that the board’s approval for the transaction was clearly conditional upon adherence to the necessary procedures by Mera’s executive management.
Treasury has since recommend as follows: “Based on the foregoing, I recommend as follows: . The Mera Board should suspend, with immediate effect, all key officers whose responsibility it was to: [a]. Advise the board accordingly, and/or [b]. Ensure that proper government procedures would be followed in this transaction;
“. The Mera board should request the Director of Public Prosecutions [DPP] to persecute all the key officers specified under  above, and/or apply any other disciplinary measures as it may deem appropriate.”
The development follows press reports that Mera diverted K3 billion from the PSF for Admarc to buy maize.Follow and Subscribe Nyasa TV :