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.

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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