YHRDN Calls for Swift Parliamentary Action on K7 Trillion Debt Owed by Total Energies

By Burnett Munthali

The Young Human Rights Defenders Network (YHRDN) has urged the Malawi Parliament to take immediate action regarding the staggering K7 trillion debt owed to the government by Total Energies. This call for action stems from a longstanding issue dating back to 2001 when Prima Fuels entered into a contractual agreement with Total Malawi Limited to supply fuel to the government.

Mervin Kxumayo, the Chairperson of YHRDN, made the call after presenting a petition to Parliament, urging lawmakers to address this critical financial issue. According to Kxumayo, Total Malawi Limited agreed to remit 50 percent of the retail margin on every litre of fuel supplied to the government. However, despite benefiting significantly from its partnership with the government over the years, Total Energies allegedly failed to honor this financial commitment.

“Over the years, Total Energies has benefited significantly from this partnership, enjoying unfettered access to government fuel storage facilities, duty-free capital equipment imports, and the exclusive implementation of the ‘Top Card System’ for government transactions but has never been remitting to government,” Kxumayo said.

The YHRDN Chairperson expressed concern that the company has failed to remit the agreed-upon amount, creating a huge debt burden. This issue is particularly troubling, given the country’s ongoing fuel shortages and other economic challenges. Kxumayo stressed that it is deeply disturbing for a corporation to hold such a significant sum while the nation continues to face serious economic hardships.

Blantyre Malabada Member of Parliament Ismail Mkumba, who also serves as the Vice-Chairperson of the Budget and Finance Committee, received the petition and expressed his commitment to ensuring that the matter is brought to the attention of the relevant parliamentary authorities. Mkumba pledged to take the necessary steps to ensure that this issue is dealt with in a timely manner.

The YHRDN’s petition highlights the importance of corporate accountability, especially when the public sector is involved. With Malawi’s economy grappling with fuel shortages and rising costs, the failure to address this long-standing debt is seen as an impediment to the country’s development and well-being.

As the petition moves forward, many are hopeful that Parliament will act swiftly to resolve the issue and recover the funds owed to the government, ensuring that the nation’s resources are used effectively to address the pressing challenges faced by the Malawian people.

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