By Leonard Masauli

Lilongwe, September 29, Mana: The National Oil Company of Malawi (NOCMA) has assured stable fuel supply in the country, clarifying that so far, no financial transactions have taken place between the two proposed fuel deals with G.E.T Global and Sheikh Saud bin Saqr al Qasimi of the UAE.

This was said during a press briefing held at Bingu International Convention Centre (BICC) in Lilongwe on Sunday to clarify how fuel is procured in the country.

NOCMA Chief Executive Officer Clement Kanyama said since covid 19, the country has not been able to generate forex for critical imports including fuel.

 Kanyama said as a country coming out of covid 19, the country is failing to generate adequate forex to pay for the critical imports.

“We are benefiting from a situation where all the four suppliers have agreed to waive a contractual requirement. In this, we are required to establish letters of credit with these suppliers, when they supply on open credit and the amounts are due, we are also not able to pay the amounts on the due dates.

“As a result of that, there have been times when the volumes of fuel in the strategic fuel reserves have been depleted, and there have been some instances where we've run out of stocks in the retail outright,” said Kanyama.

Kanyama said with such a scenario, NOCMA examined the situation and concluded that in addition to engaging local banks to secure increased Forex, they also decided, such as one, where the suppliers are paid in Malawi Kwacha.

However, he said to do that, there is a need to follow the processes, such as open tender, restricted tender and single sourcing.

“Now allow me to indicate that Sheikh Saud bin Saqr al Qasimi who then came up with an offer that they are willing to be paid in Malawi Kwacha. Now, this Malawi kwacha will not be taken to UAE, but shall be used by this office of the sheik in implementing the activities which they intend to implement in Malawi under the MOU.

“So, I can assure you, and I can assure the country that, as NOCMA, we have not seen anything which is suspicious to us. This is a single sourcing of a supplier because there is an advantage, where they are going to pay in Malawi Kwacha,” he said.

Concerning the contract between the Ministry of Transport and Public Works and G.E.T Global which is on concessionary terms, NOCMA CEO said the Ministry of Transport and Public Works is yet to be issued a license by Mera and a hospitality agreement is yet to be signed.

He said this includes verification work with entities storing the product, which he said has also not been carried out by NOCMA, which among others is to obtain confirmation on the bank accounts that will receive payments for onward processing to the supplier.