Parliament on Tuesday passed Bill Number 29 of 2024, namely the Liquid Fuels and Gas (Production and Supply) Amendment Bill, which makes a provision for a new arrangement for the importation of diesel and petrol into Malawi.
It is known as the Government-to-Government fuel supply arrangement.
According to the bill, a Government-to-Government fuel supply arrangement means a bilateral or multilateral arrangement with a foreign state, province of a foreign state or sovereign government for the procurement of liquid fuels and gas by the Government of Malawi.
The arrangement, according to the bill, can either be made directly with the foreign state, province of the foreign state or the sovereign government or through legal entities owned by the foreign state, the province of the foreign state or the sovereign government.
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Energy Minister Ibrahim Matola said the bill would benefit Malawi as it would enhance the availability of fuel in the country. The bill also provides for the imposition of monetary administrative penalties by the Malawi Energy Regulatory Authority (Mera) for non-compliance with conditions of a licence and energy laws.
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It also replaces the appeal process to a judicial review process to the High Court for a person who is aggrieved by a decision of Mera, in addition to enhancing the punishment for a person who commits an offence under the Act from the fine of K50 million to a fine of K500 million.
However, opposition Democratic Progressive Party spokesperson on the bill, Bright Msaka, described it as a thieving bill. According to Msaka, the bill seeks to sidestep rules of public procurement as stipulated in the Public Procurement and Disposal of Assets Act. He said the new bill wants to put the Minister of Energy above the law and make him answerable to nobody.
“The minister cannot choose not to obey the Constitution.
“If the government wants to operate without respecting the Constitution, then the government must resign and run some Banana Republic somewhere but not Malawi,” Msaka said.
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He observed that it would be hard for the people of Malawi to know whether procurement of fuel is at a fair price.
“How will the people of Malawi know that you are not receiving kickbacks?” Msaka asked.
On her part, United Democratic Front spokesperson on the bill, Esther Jolobala, said she had reservations on the bill.
Jolobala claimed that some senior officials at the State House would be controlling the government to government arrangement, an allegation that did not please Leader of the House Richard Chimwendo Banda.
He demanded that Jolobala produce evidence to support her claims.
Jolobala has vowed to bring the evidence on Wednesday.
