National Oil Company of Malawi has said it is failing to recover about K1 billion, from Malawi Cargo Centre Limited (MCCL that was used for rehabilitation of fuel facilities in Tanzania.
Reporting to the Parliamentary Committee on Natural Resources and Climate Change on the status of the loan, Nocma deputy chief executive officer Helen Buluma on Monday said MCCL is not paying back the money even though the loan was due three years ago.
She said MCCL was supposed to start repaying the money in 2018 after starting to use the facilities.
“The arrangement was that repaying of the money should start soon after the facilities are in use. The facilities are being used but MCCL is not repaying the money,” said Buluma.
She lamented that MCCL has not made efforts to pay the money despite that the repayment period ends in 2022
She revealed that Nocma is now engaging government to intervene on the matter.
Ministry of Energy Principal Secretary Patrick Matanda said he was hopeful that the issue will be resolved.
“We are hopeful that the agreement will be honoured and Nocma will be refunded its money,” said Matanda.
He said the ministry will have to come in if MCCL continues to default.
Parliamentary Committee on Natural Resources deputy chairperson George Million said MCCL has to meet its obligation.
He said if the money is not repaid, the committee will take steps to ensure it is recovered.
Million added that government should also take over running of the Malawi Cargo Centre, saying it was constructed by taxpayers’ money: hence, government needs to utilise it. Government instructed Nocma to meet the cost of rehabilitation of the fuel tanks and pipeline. The rehabilitation of the facilities was done to improve fuel supply to Malawi.