Minister Kambala cancellation of Nocma contracts illegal, says ex board member

A former National Oil Company of Malawi (Nocma) board member says the minister of Energy Newton Kambala has no legal power to cancel contracts at the state run oil company.

Minister Kambala cancelled the contracts

Fryson Chodzi said what Kambala has done in writing the Nocma board to cancel all oil contracts until a new company management is hired is illegal.

Kambala has made a directive by writing to the board of Nocma that the current process of identifying new fuel supplies be suspended, and Nocma to put up a credible management and then reengage in the process of identifying new suppliers.

Kambala also told a local newspaper that the deputy CEO for Nocma Helen Buluma doesn’t like supervision.

But Chodzi says all these two reactions are wrong and dangerous especially coming from Minister of Energy who ironically by doing what he has done confirms the allegations raised by DCEO of NOCMA to ACB about the interference.

“The minister has no business with Nocma.

“For most people who doesn’t know, Nocma is not a parastatal irganization like National Youth Council of Malawi. “NOCMA is a Limited Company whose shareholder is the Government and the President holds the shares on behalf of Malawians.

“As a shareholder he appoints the board of directors whose responsibility is to ensure that the interest of the shareholders, Malawians are protected and that the company performs according to its establishment,’ he says

He says the oversight and supervision is in the hands of the board which is supposed to report directly to the shareholder, the President.

He says that is the more reason why, the chairperson of Nocma from time immemorial and since its establishment has always been the Secretary to the President and Cabinet (SPC) or the Chief Secretary as it was before.

“Nocma board has no ex-officio but directors. And in order to ensure that the shareholders interest are protected more, often as is tradition, the President also appoints government officials who are professionals related to the oil industry to ensure the interest are protected.

“These include the Secretary for Energy as Director, the Controller of Statutory Corporations, and Secretary to Treasury and other private Directors as it pleases the shareholder, the President,” he says.

He says in all this, there is no role of the Minister in the management and operations of Nocma.

He says working with the minister is out of respect and practice not a requirement.

“This being said, already it challenges the assertions of Hon Kambala that he wanted to supervise Nocma and the management in place doesn’t want supervision. Any involvement of the Minister in Nocma is indeed interference,” says Chodzi.

Buluma has also reported presidential aide, Chris Chaima Banda and Aford president Enoch Chihana to the Anti-Corruption Bureau for corruption.

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2 years ago

This is the kind of knowledge we need to have in this country..thanks Mr Chodzi.

2 years ago

Chodzi is wearing a party hat. He knows that as a minister responsible for energy, Kambala must have an interest in what is happening at NOCMA. Should there be shortage of fuel in the country, all fingers will be pointing at him. So, what Chodzi saying is nosense. He is DPP boy and can’t have any kind word for ministers in this government. As a minister, he oversees all government agencies under the ministry. That’s what it means.

2 years ago

U mean a nduna

Doesnt know kuti he has no powers
Only the president thru the board
Help us lord

Alamu Pumani Mwakalamba

Listening to cadet Chodzi is a waste of time. He was a disgrace during the rule of thugs.

2 years ago

Shaaa… apa this former Board Member needs to collect kangachepe for school fees… or is it free education ya ulele? 😆😆

2 years ago
  • Lack of experience
Patrick Phiri
Patrick Phiri
2 years ago

These governing amateurs are a national disgrace

2 years ago

Apapa zikuoneka kuti akufuna wa MCP akhale minister chifukwa Kambala ndi wa UTM. Nanga zutheka bwanji kuti mvundula madzi Helen Buluma anthu azimuombela mmanja? Chifukwa iye wachenjera pogona? A MCP ali phee chifukwa ali mbali yawo. Mudziwe kuti si aliyense opanga report ku ACB ndekuti akunena zoona!

Game changer
2 years ago
Reply to  Tchutchutchu

Umbuli uwu…Kambala walakwa basi osati mudziloza chipani cha MCP. Sakuyenela kupanga supervise a limited company as a minister…SPC was supposed to…mwamva?

Mwini muzi
Mwini muzi
2 years ago

Exposed ,exposed ,exposed. Indeed one wonders whether a cabinet minister has jurisdiction to cancel valid contracts in operation without following due process in reference to the reasons stipulated on the cancellation clauses. Does this minister really understand corporate governance or if he does, is he using his positional power where it is irrelevant? Thanks that we have access to information regarding anything including malpractices from these public entities and no one in the high offices should decieve themselves that they can get away with corrupt activities without being exposed.

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