HRDC exposes more procurement rot at MERA:  Furnishes ACB with documents to facilitateprobe

The veil is certainly off the face of the Malawi Energy Regulatory Authority (MERA) and it is now time for the poor taxpayers to see the plunder that has been obtaining at their organization.

Magalasi:  No comment–Photo by Watipaso Mzungu, Nyasa Times

MERA is mandated by Parliament to regulate the energy sector in Malawi in a fair, transparent, efficient and cost effective manner for the benefit of the consumers and operators.

But if the contents of letter of the Human Rights Defenders Coalition (HRDC) to the Anti-Corruption Bureau (ACB) is anything to go by, you will be left with no other option than to suspect that MERA has been operating as a ‘cash-cow’ for the chosen few politically-connected souls.

HRDC has uncovered underhand dealings into MERA’s procurement of electronic fuel level sensors for fuel tanker trucks and electronic fuel level sensors for depot fuel storage tanks.

The sensors were meant to check the siphoning of fuel from tanker trucks and depots.

The suspected corrupt practice has prompted HRDC to write ACB, asking the graft-busting body to commence the investigations to the procurement as soon as possible and that the anti-corruption body should update the nation when the investigations have started.

According to the coalition, MERA invited restricted tendering for 1, 447 sensors for tanker trucks and 135 sensors for depot fuel storage tanks although, as a regulator, MERA does not own trucks or fuel depots.

“We do not know how the companies that participated in this restricted tendering were identified. One would suppose that probably these companies had prior expertise in similar work. On 30th November 2017, MERA opened bids with the following results: MARS International/Mike Appeal JV – MK2,396,000,000.00, Lamat Globe Limited -MK39,000,000.00, Linearity Systems      – MK1,247,240,000.00, North End Motors – MK800,716,114.75, VEGA Investments – USD3,656,742.80, E Trading Incorporation – MK1,104,690,135.95, City Motors/Tracker Limited – MK4,494,450,587.50, Delta Energy Gas – USD  965,020.00, CEE-Elo Petroleum Energy – MK 318,863,476.62 and Pulsit Electronics Limited – MK910,573,239.00,” says the HRDC letter.

The coalition’s chairperson Gift Trapence has signed the letter alongside his executive members.

Trapence says after the opening of the bids, MERA indicated that there was need to include additional specifications, which required that the companies should submit fresh bids.

“For purposes of this letter, we will only highlight the bids that met technical specifications and their new prices: E Trading Incorporation – MK1,002,190,500.00, Pulsit Electronics – MK910,573,239.00, CEE-ELO Petroleum      – MK348,859,606.23, MAS/Mike Appeal JV -MK3,254,492,776.62 and City Motors/Tracker at MK4,654,175,000.00. MERA then went ahead to award the contract to MAS International/Mike Appeal Gato Joint Venture whose second bid had increased by MK800 million. On 19th March 2018, MERA then wrote the Public Procurement and Disposal Authority (PPDAA) seeking a “no objection” to proceed awarding the contract,” alleges the letter.

HRDC adds that on 3rd April 2018, PPDAA responded to MERA indicating that they were withholding their “no objection” in terms of section 44(7) of the PPDA Act as MAS International was not the lowest evaluated bidder.

PPDA also advised MERA to engage the Ministry of Justice and Constitutional Affairs to help draft a proper contract to protect Government from paying unnecessary additional costs.

However, instead of following the advice, on 8th May 2018, MERA wrote back to PPDA appealing against the decision.

On 22nd June 2018, PPDA wrote to MERA maintaining their position that the contract could not be awarded to MAS International as doing so would not promote the principle of value for money. PPDA further advised MERA to re –evaluate the bids and award the contract to the most economically advantageous bidder.

On 28th June 2018, MERA wrote a second appeal to PPDA clarifying their choice of MAS International. Among the reasons given was that the preferred bidder had a proven track record of involvement in similar service.

“Based on this clarification and in terms of section 51 of the PPD Act, PPDA granted the no objection. Our preliminary investigations, however, indicate that MAS International has no proven track record of involvement in similar service. We wonder why MERA had to lie to PPDA. Furthermore it is our understanding that these electronic sensors were going to be installed on private trucks and private fuel depots. We wonder why MERA was being involved in private enterprise.

“At the very least and being generous, we think this is micromanagement of the fuel industry. Our preliminary investigations indicate that out of the 1447 trucks, MAS International had only installed sensors on less than 20 trucks,” states HRDC in the letter.

The coalition has supplied several documents to ACB to substantiate the claim and enable the graft buster to use in investigating the matter.

MERA chief executive officer Collins Magalasi said he would not comment on matters that are in the hands of ACB.

The energy regulatory board was recently dissolved by President Lazarus Chakwera. It was being chaired by Bishop Joseph Bvumbwe.

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32 replies on “HRDC exposes more procurement rot at MERA:  Furnishes ACB with documents to facilitateprobe”

  1. PVHO also to be investigated. They were giving Stecelia Motors contracts not deserved to such pumpkin garage. Issuing cheques to non service vehicles.

  2. Allexon Chiwaya ceo escom Collins Magalasi ceo mera
    Itaye DG macra These 3 have looted beyond ones imaginations. Then theres is all these
    MRA, ADMARC, WATER BOARDS, IMMIGRATIONS, ETC.
    Bwana VP please stick your words and make sure all these previous and past parastals CEOs DoFs n others are put behind bars for a long period. THESE PEOPLE HAVE COMMITED CRIMES AGAINST HUMANITY. This is the only way to stop and discourage all would be thugs thieves and mbavaaz in future and years to come.. We, the Malawians are expecting over 80% of USD 5BILLION stolen to be recovered and that should be utilized for improving health and education n others social services which has gone beyond acceptable standards. We are closely monitoring and watching you Tonse govt. USD 4Billion can solve and sort out a lot of problems and challenges in our country. Set up a loot recovery bank account and all monies recovered must be put in their and public to have access to see to that account.

  3. Very good about MERA and witchhunting-can we be appraised about what the goverment is doing about COVID-19. People are dying out there and all we hear is about corruption. The sleeping govt need to account for this slumbering.

    Should we go into another 30 day fast?

  4. You are busy witch-hunting and falsifying corruption cases when people are dying like flies from COVID. Useless TONSE govt. Mkwiyo wa a Malawi ukupezani posachedwa.

    1. Mkwiyo wa Amalawi ake ati? Omwe amaberedwa ndalama zamisonkho zawowo? Koma uchitsiru sachitadi kuimbira ng’oma,,,,Anthu otembereredwa inu.

  5. I used to respect Magalasi when he was at MEJN. His constructive and objective criticism of govt then was quite laudable; but once he became APM’s economic adviser, he took off his technocratic hat and donned a blue political, nyekhwelised cap, he became useless as an objective technocrat.

  6. Mr Magalasi, you had a lot to say when you were pocketing the money now you are speechless??…. you have no comment????…… iyayi bwana, timasuleni ndithu

  7. This is nothing compared to the theft at immigration where there is a syndicate for issuance of permits. The syndicate involves ministry officials, the bank and immigration officers. They will issue fake bank receipts and process the file and all fees go to their pockets. to catch these thieves at immigration, conduct a headcount of all people with permits then compare the money received and receipts issued. From this exercise you will discover that there are more permits that were issued and will not have back up money. One guy was arrested called Chidothe and he managed to bribe his way out of police and the bosses reinstated him because this is a syndicate. Msisya is an errand boy for Medi who runs corrupt activities for Medi

    1. True,,,Even police clearances they issue them without receipts. I once reported the issue to the ACB because I was so pissed off when they took by 5000 without receipts on two separate occassions but the ACB did nothing. I was told that they meet on thursdays to make decisions on these issues but after following up on them for a number of times I left it because it was clear that they were birds of the same feathers. ACB is as corrupt as the police. Look at the way the traffic police steals money from motorist. A professional ACB should have trapped them using their agents but nothing of that is hapenning. In USA if you post extremist materials they follow up on you by posing as people who can help you do the job you want to do. A lot of extremists have been jailed using this trap. With all the corruption promulgated by the traffic police for years no single person has been trapped and taken to task. Chakwera and Chilima should put the right people at the ACB if they want to win this fight. They should also redeploy all those evil traffic police to general duties and put new blood their. We are tired of government which looks on the other side when its own citizens are being milked by evil government officials.

  8. Collins Magalasi another thug brought by Mutharika to mess up our country, this thug knows nothing about good corporategovernance principles but just looting our taxes, jail this thug now now, we are tired of such stinking bastards stealing our monies, rot in hell Magalasi

    1. He knows how to do work but he chose to throw all intelligence outside just because of money

  9. Dont waist our tym. We are waiting for K4,495 fertilizer nothing else. Apo biii mademo load……. mesa mnatiphunzitsa kale

    1. azoba inu, u think his govt can fail to buy 7 million bags, ngati amagula matumba acement a 5.2 billion. kapuku iwe

    2. @ Malawi wa lero
      Pita wekha kuma demoko ! Ndiye ukumuwudza ndani ?
      It seems that your BRAINS function less and that is why you don’t even know kuti walemba chiyani

        1. Ndiwe mbuli yachabe chabe,,,waist sumadziwa kuti ndi nganga? Ana akapolo inu okhalira kuseta nkhalamba ku South Africa.

        2. Malawi walero usatinyansepo apa, ukudya rand mofatsa kuti??? Jonzi timaidziwa mumakhaliranso cheucheu nkumati ukudya mofatsa??? 😂😂 Zoba weniweni, ndeumati upita kumademo kwake kuti?? Ukapangila mademo ku Honeydew kwakoko kumikhukhu?? Ukanangokhala chete man bcoz it seems you are headless

    3. The K4, 495.00 and the 1 million jobs, etc promised, will ably, easily and effectively come from the monies that we will recover from these inhumane rooters.

    4. K4,495 could not be a problem at all, but just look mmene mwabela a Malawi! Iwe ndiwe Chitsiru kwambiri! Pitani pa nsewu, ulendo uno tibwezela mmene munaphela anthu 20 kumpoto! Yeselani muoone! Zitsiru zimbava za aLwomwe! Ndalama zonse zikutchulidwa apazi siungapange manyazi? Stupid!

    5. Ugula bwanji fertilizer wa K4,495 asanabwenze ndalama zomwe amaba achina Magalasi?? Iweso Cadet wasowa zonena eti…. Tonse govt is still in a healing process, don’t think it’s that easy to clean the mess caused by DPP regime, umbuli eti!!!!

    6. munthu oti zache zinayera koma akubangula ya feteleza? Cadet iwe uwona nyekhwe ukudya Rand kuti? Umadyera kuzipaka paint, lero chakwera walanda paint ndi brush lomwe munya muona . Anthu a ulesi osafuna kugwira ntchito. Akuti ana A Dad, fotseki. Kakhaleni kwa ambuyanu alephera kumaliza nyunba aja

  10. I’m anyway wondering how all this levis on each litre of full we pay get accounted for! There is no transparency also for the share the Road Fund (Road Authority)gets out of it! We as citizens need more inside in how much this Authorities collect, and where they spend it!
    Of course procurement and cheating along the supply chain is another and quality of fuel an additional one!

  11. Chakwera, when will you appoint the Board of Directors of HRDC which seemingly is a Parastatal? SC63

    1. Bwanji akukuopsani kwambiri a HRDC right? Koma manyazi sakukupezani? Kapena umunthu unatha kale kale!

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