In a move shrouded in secrecy, selected officials from the State House, trusted members of the Malawi Congress Party (MCP), and some government outsiders worked tirelessly over the weekend to draft new Cabinet papers aimed at changing the procurement laws for fuel, a strategic commodity.
The plan was to pass these papers through a blind vote as early as 8 am on Monday.
However, senior officials at the Office of the President and Cabinet (OPC) intervened, citing the short notice as a concern.
According to impeccable sources, the Cabinet convened at 6 pm on Monday and passed both papers without scrutiny.
Parliament is now expected to fast-track the passing of the bills, which are being presented as a Government-to-Government procurement system.
A source said: “The entire fuel procurement process is now controlled from Area 6, where selected and privileged individuals are meeting. While the government, through National Oil Company of Malawi (NOCMA), is receiving products from current suppliers on credit, they are reluctant to open a Letter of Credit (LC) for their benefit, preferring new suppliers yet to be introduced.”
The source further disclosed that another official is currently in Dar es Salaam seeking a hospitality partner, while another has been forced to issue an LC worth USD 54 million to benefit Gulf Energies and Dalbit of Kenya.
Meanwhile, President Lazarus Chakwera confirmed the government-to-government deal arrangement in his national address on Wednesday evening.
Although he did not provide detailed information about the new arrangement, he indicated that he has tasked a committee to expedite securing the first G-to-G agreement.
Chakwera also mentioned that he has been invited by the President of the United Arab Emirates to visit Abu Dhabi next week to discuss fuel deals and other matters.
“The challenge that NOCMA and PIL face in accessing forex from the market through the Open Tender System we use to import fuel has resulted in supply disruptions over the past 20 years. It is time for us to take a different approach,” Chakwera said.
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