Kapito pens JB on crude oil proceeds
Consumers Association of Malawi (Cama) executive director John Kapito has written President Joyce Banda, demanding an explanation on how resources from the donated crude oil from Nigeria have been used.
Kapito in a letter addressed to Chief Secretary Hawa Ndilowe dated January 7 2014, which The Nation has sourced, says the Nigerian Government through its President Goodluck Jonathan donated crude oil to Malawi when he visited the country last year.
Office of the President and Cabinet (OPC) spokesperson Arthur Chipenda said OPC had not yet received Kapito’s letter, but was ready to provide information if given enough time.
Said Kapito: “We strongly believe that Malawians are entitled to know how government uses any donation received on their behalf and how such donations contribute to their livelihoods. The donation was for Malawians and it is important for the incumbent government to explain and inform the public on how such a donation has been used.”
He asserted that a memorandum of understanding (MoU) between Malawi and Nigeria was signed by Jonathan and Banda.
He added that the Nigerian Government promised to donate and supply the country with crude oil to alleviate the economic challenges the country was experiencing at that time.
“The Consumers Association of Malawi has in the past months made several inquiries with the ministries of Finance and Energy on how the proceeds from the crude oil were used by Malawi, bearing in mind that during the same period consumers experienced high petroleum prices despite the crude oil donation from Nigeria, unfortunately the two ministries have not responded to our inquiries.
“We are, therefore, requesting the President through the Office of the President and Cabinet to inform Malawians on the proceeds from that donation and how those resources were used to address the economic challenges faced by Malawians knowing fully that the President was also a signatory to the memorandum of understanding and a self-proclaimed champion against corruption in Malawi,” said Kapito in the statement.
But said Chipenda : “The OPC is ready to provide detailed information, if accorded sufficient time, on how the arrangement has been operating. I will be ready to do so by Friday, January 10 2013.”
In April last year, Weekend Nation carried a story detailing how the State House had dragged the country into a crude oil contract with a Nigerian firm that could be costly for the already troubled economy.
The government-to-government deal, signed between the Republic of Malawi and the State-owned Nigerian National Petroleum Corporation (NNPC) on May 16 2012, but which came into effect on May 1 2012; expired on April 30 2013.
According to the contract, before making the first uplift of the oil, Malawi as a buyer agreed to pay upfront $2.5 million (over K1 billion).
At issue was the manner in which State House handled the contract given that this was a highly technical matter; the lack of a clear cost-benefit analysis for Malawi in the deal and the legal pitfalls government could find itself in at the closure of the one-year contract.
Weekend Nation
investigations showed that to facilitate the deal, President Banda gave Michael Anyiam-Osigwe—who she had earlier appointed as Malawi’s Honorary Consul-General to Nigeria—authority to sign the multi-million dollar crude oil deal on behalf of Malawi, before involving relevant government technocrats.
The paper found out that Anyiam-Osigwe—a member of one of Nigeria’s wealthiest families—went ahead and enlisted PDG—a company run by his relation Raymond Anyiam-Osigwe—to act as the agent in return for some unspecified payment of royalties.
Under the arrangement, Nigeria agreed to supply Malawi with crude oil through the NNPC and allowed Malawi to either process or sell the crude oil.
Kodi ndi chifukwa chani aMai’wa akungotchuka ndi nkhani zoipa zokha zokha monga kulanda azimuna a eni, kuba ndalama za boma, kuba chimanga cha ADMARC, kusokoneza NABW, kupanda nzeru, kunama, kusintha sintha ma statement ngati woduka mutu, kusakhala pansi ngati m’zimai wodzilemekeza yekha etc etc. is there any sanity in this woman or she is just a waste of space? Surely, at least she should have made a mark in any area no matter how modest. Obviously we can’t mention her useless stone foundation laying exercises as a productive, neither can we say her elevation of chiefs as something beneficial to the nation because if anything at all those chiefs were already there when she was busy frying her fritters. Now are you Malawians sure that you want a repeat of this nonsense come 20th May, an encore of a record people have no desire to dance to its malicious sound? What a sorry state of a Head of State.
She will campaign hard to avoid facing the wrath of the cash gate if she losses election. Do you think Mphwiyo, Lutepo, Kasambala and all Malawians will leave her. No ways. Ndalama za chimanga, ng’ombe, Mudzi Transformation, zida za nkhondo, etc,etc akuzitenga kuti poti dziko lonse including the Government have no money.
Mai joisi Nabanda ndinu okuba mopusa anzanu akhala akuba ndalama zaboma koma sizangati zanuzo ai.walephera kulamulira dziko umati Bingu sakutha nanga iweyo ukuchitapo chani?chaka chino waku jail basi uona.
The irony of life………stealing a lot of government money to use for campaign only to face an angry electorate demanding answers about the very money you have stolen. Kuba uku sikunakupindulireni Amai. there is no way you are going to win the presidency before cashgate issue is resolved to the people’s satisfaction. There are only 2 possible outcomes here. You lose the presidency and surrender the money; or lose the presidency and go to prison.