Malawi gives National Oil Company K50bn bail out: Botolo removed at Treasury ‘for refusing to play ball’

Ministry of Finance has lined up a whopping K50 billion bail-out package for financial troubled National Oil Company of Malawi (Nocma), a government-owned company, and the issue has cost Secretary to the Treasury Ben Botolo his job, Nyasa Times can exclusively reveal.

Botolo: Re-assigned

As first reported by Nyasa Times on Monday evening, Botolo has been replaced by Cliff Chiunda who was Principal Secretary (PS) administration in the Office of President and Cabinet (OPC).

Botolo, with extensive experience in the public service and has served as Secretary to Treasury for  over two years, has been relocated after he did not want to be party  to  those arranging the “illegal bail-out” package.

“As you are all aware, Nocma has been run down by government. It is headed by Mulhakho wa Ahlomwe executive member Gift Dulla and they have ransacked it. Now they want tax payers to pay for its bail out as if those tax payers were not buying fuel at a high price already,” revealed Nyasa Times source privy to the scandal.

The source said  the Treasury Czar and Minister of Finance Goodall Gondwe has lined up the K50 billion bail-out package and all the top people at the Ministry of Finance are aware of the development.

But Botolo advised the minister to seek parliamentary approval for the bail-out and this has led for his removal, according to our sources.

Insiders at Treasury said government wanted to bail-out Nocma secretly and avoided going to Parliament because it would find it had to explain why Nocma is being bailed by tax payers who are paying high prices of fuel already.

Nocma has been run down by supporting ruling party cadres with obscene contracts worth millions of Kwachas and has been fighting to take over importation of fuel products in the country from privately owned and efficient Petroleum Importers Limited (PIL).

PIL—a consortium of fuel importing companies—agreed to Nocma’s proposal to be importing 50 percent of fuel into country with the other half to be handled by Nocma over a 10-year period.

In 2015, the Ministry of Natural Resources, Energy and Mining announced that government had decided that Nocma would be the sole importer of fuel and would be selling it to owners of filling stations as it had capacity to keep about 60 to 90 days of fuel for the country following construction of fuel reserves in Blantyre, Lilongwe and Mzuzu.

The fuel reserves were built with a line of credit from India amounting to $26.4 million (about K19 billion).

Meanwhile, Botolo has confirmed that he has been “re-assigned” to the Foreign Affairs Ministry and is currently doing handovers at Treasury.

Governance and development specialist Henry Chingaipe commented that the movement of Secretary to Treasury “is one which we can say may have a motive behind it.”

Chief Secretary to Government Lloyd Muhara could not immedietly comment as he was reported to be in Dubai in what Nyasa Times understands he is sealing a petroleum  deal between Nocma and Sahara.

Follow and Subscribe Nyasa TV :
newest oldest most voted
Notify of
President
Guest
President

Our country will never improve. We are just from a fuel increament and here Nocma and Mera have awarded the fuel tender leaving out the cheapest companies without feeling for the common man on the street as long as their pockets are filled. They are in those positions to enrich themselves. Look at the prices that were bidded in the last tender: Mark Petroleum- Mogas and Gasoil $ 101.00 p/mt Delta Energy -Mogas $73 Gasoil $65 Glencore – Mogas $94.90 Gasoil $69.90 Yazam Energy -Mogas $102.90 Gasoil $79.90 Galana- Mogas $105 Gasoil $92.00 Dalbit -Mogas $100 Gasoil $80 Finergy -Mogas… Read more »

President
Guest
President

Mr president

Arafat Hamdan the Ghost worker
Guest

Ndiye botoloyu ndimulomwee kapena mtumbuka?

Kennedy
Guest
Kennedy

Tell me there is noone who can stop this nonsense?

Pitala and Zamiya K145 million
Guest

If life was a thing these thieves would buy it and live forever. Do you hear this Alamu Pumani Mwakalamba and your dpp. Please spare our taxes. Please don’t ymuse our taxes to build commercial teams stadia. Clubs in Europe use their own resources. Alamu Pumani Mwakalamba is a very unreasonable man. Ver dull and an idiot.

JOHN
Guest
JOHN

PUBLIC ACCOUNTS COMMITTEE, PLEASE FOLLOW THIS BAIL-OUT PAYMENT TRICTLY. IT IS A WAY OF SYPHONING MONEY FOR DPP CAMPAIGN.

REMEMBER THE CHIEF SECRETARY IS CHAIRPERSON OF THE NOCMA BOARD AND GIFT DULLA (MULHAKO EXECUTIVE MEMBER AND MEMBER OF FUNDRAISING COMMITTEE FOR THE ORGANIZATION) IS THE CEO. BOTH DULLA AND CHIEF SECRETARY ARE MULHAKO!

EEISH! THIS GOVERNMENT STINKS CORRUPTION BIG TIME!

JOHN
Guest
JOHN

THIS ISSUE MY BE SET ASIDE AND RELOOKED ONCE GOVERNMENT CHANGES HANDS!

bwampini
Guest
bwampini

koma ziriko. Satan is ruling our country. mwati ndalama zizakukwani agalu inu. Botolo, nawe uli ndi ma deal ako, asakudziwa ndani, mbava.

Chifundo
Guest
Chifundo

What is the chief secretary doing closing a petroleum deal in dubai?? That is no way his duties. This smacks of corruption. Why is nocma unable to close its own deals

Grace Mwenda
Guest
Grace Mwenda

That’s why these matchonas and agogos don’t want to step down as they are afraid of the aftermath once they are not in control.