National Oil Company of Malawi Did Not Receive Approval from PPDA to Deal with Al Qasimi

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By Burnett Munthali

We wish to clarify a misunderstanding in our earlier post regarding the involvement of the National Oil Company of Malawi (NOCMA) in the procurement of fuel supply from His Highness Al Qasimi. Contrary to what was suggested, the Public Procurement and Disposal of Assets Authority (PPDA) never approved this procurement.

NOCMA’s Chief Executive Officer, Clement Kanyama, provided clarification on this matter during his appearance before the Budget and Finance Committee of Parliament yesterday. Kanyama detailed the sequence of events, making it clear that no approval had been given for the deal.

“On 9 September 2024, PPDA informed NOCMA that a ‘No Objection’ to single source His Highness Al Qasimi has been withheld,” said Kanyama. He further explained that the PPDA instructed NOCMA to act upon the due diligence guidance provided by the Malawi Energy Regulatory Authority (MERA) regarding a special purpose vehicle linked to the transaction. “Once concluded, MERA should be requested to provide its conclusive direction before a re-submission is made to the Authority,” Kanyama added.

This information highlights that NOCMA was advised to conduct further checks and that the process is not yet finalized. The Budget and Finance Committee is expected to hear from both the PPDA and MERA to gain more clarity on the situation.

This latest development underscores the importance of due process and the rigorous checks that are involved in fuel procurement deals to ensure transparency and compliance with legal standards. Further details will be provided as the matter unfolds.