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.
As first reported by Nyasa Times on Monday evening, Botolo has been replaced by Cliff Chiunda who was Principal Secretary (PS) administration in the Office of President and Cabinet (OPC).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.
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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 $99.80 Gasoil $78.12
They ended up awarding it to Finergy , this was just a week back in December when global oil prices dropped to nearly 60 Dollars per barrel , when the opportunity was there to award the cheapest so that a reduction in prices can be achieved. But they decided to think of themselves.
All companies that bidded were relaiable and have been doing business in Malawi so there was no technical reason they can hide behind.
They are there to line their pockets, make the people suffer and end up making the government of the day unpopular.
ACB should prove this for the sake of our poor and vulnerable masses .
Only God can help us.
Similar situation arose in the tender for 2017 when 16 companies bidded and the tender was supposed to be awarded to the 4 best priced meaning cheapest suppliers , but it was allocated to the two highest bidders namely : SAHARA ENERGY , AND ORYX , leaving out behind the cheapest international suppliers ,
What answers does DPP HAVE ON this one ??
The wrote is in the core of the ruling party .
Mr president
Ndiye botoloyu ndimulomwee kapena mtumbuka?
Tell me there is noone who can stop this nonsense?
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.
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!
THIS ISSUE MY BE SET ASIDE AND RELOOKED ONCE GOVERNMENT CHANGES HANDS!
koma ziriko. Satan is ruling our country. mwati ndalama zizakukwani agalu inu. Botolo, nawe uli ndi ma deal ako, asakudziwa ndani, mbava.
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
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.
Botolo should not play saint. This fool is one of the most greedy and corrupt individuals . He acts tough when he is not part of a deal . Ndi Mbava yotheratu. Please ACB , investigate this fool starting with the time he was PS at Natural Resourses
Goodal, all your agemates are gone IWE UKUTANI?
We now understand why you fired Mdeza and Director of Operations were fired. Ben Botolo is very much connected to his mother’s home district of Mzimba than his father’s home Phalombe. He never grew up with his father and speaks Tumbuka. Anyway Botolo is ruthless. He is evil especially to his contemporaries and generous to juniors. He is full of vengeance. He has mostly a dark side than good side.
To all those who support and love DPP: When you read and hear about all these serious allegations of abuse of public resources what holds you in DPP? Don’t you think a change of Government would some how release alot of resources for more public goods. Is it because you personally benefit from the spoils? If you do, do you then consider what the an ordinary man and women who would have benefited more from the resources lack? No matter where you come from, look around and see the poor men and women in your communities who lack most basic goods and services which are concentrated to few selfish individuals. Can you for a moment sit up, listen to their faint cries and the blood from the bruises caused by corruption. Can your religion and faith whatever it might be help you see the tears dropping down their dirty cheeks. In your hands you have a tissue to wipe out their bloody tears. I mean you can do something by voting out this Government. May your consciousness haunt you. Can you for a moment cry with the poor and may your hearts fill with pity.
Politics aside, this is the truth. You have nailed it. Big up to you
That`s wisddom Intifad, I dont see any reasons of renewing the contract of these criminals. People without love for their own country, all they think of is money money money. God save us from the hands of these crooks and thieves.
ACB…please also probe NSO census payments..One has received K5 million from a car hire firm through National Bank..Its pure corruption.
DPP top headlines
Sahara yake ya the Guptas omwe aononga zinthu ku South Africa’wa? Koma yeah, Malawi siidzathekadi ndithu!!
Malawi dziko lotembeleledwa ndithu. Be converted and live
Please ACB do not sit on this, this attracts your urgent action and auditing
You can only inform Parliament otherwise the Minister of Finance has overall responsibility in financial matters if you understand how financial matters are handled at Treasury.
@Alsa. You’re just one fool. such bailouts in civilized countries require approval from the parliamentary committee or parliament itself. This is completely nonsense…
If you dont know how the public finances are handled, just keep quite in situations like these.
Koma maliseche has completely lost track. Akawina I don’t know how his 2nd term will be.
mabvuto alipo pa malawi pano eeeee