Mera has no mandate to Govern NOCMA
By Malawi Exclusive
MERA has been all over town publishing figures about how expensive NOCMA will land its fuel under the current fuel procurement process.
They unashamedly claim that NOCMA’s procurement process will land product $50,000,000.
The cat is out of the bag. MERA working directly with some compromised gurus have been caught with their pants down.
The floated amount of $50,000,000 is fake.
A total misrepresentation of figures and facts skewed at getting the public on their side and of course if that comes from the regulator – who would have the guts to dispute such facts – as these are supposed to be experts – but the current MERA leaves a lot to be desired.
Sadly they have managed to fool the public mostly those who parade as patriots! That’s what Mafia’s are good at.
They make the good guys look bad as they make away with their loot and leave the sheriff going after the good guy only to realise too late that actually it’s the other way around.
So MERA has taken advantage of our ignorance to push NOCMA for their preferred suppliers Trafigura.
Having had a look at the read-out prices being floated around, analyzing the same and researching further, we are ready to let the cat out out of the bag:
The figures MERA is floating are fake computations meant to mislead the public and try and pour mud on NOCMA’s fuel procurement process as the latter has refused to bow down to pressure to include Trafigura and Orxy as suppliers.
MERA has used read-out price and made comparisons between Lake Oil offer price and that of Trafigura (their main preferred supplier) – Indeed a comparison of the two does provide for some difference but not $50,000,000 but close to $15,000,000;
Here’s the catch! Trafigura indeed provided very low premiums BUT too low that they beat the world price oil! Trafigura bid $188.76/MT for diesel against $323.99/MT for Lake Oil for the same route! Where would they get such oil on this earth.
The tender attracted 23 bids whose average offer on that route was $330.20/MT! So without defending any supplier, Lake Oil seems to be within that average.
However, it means Trafigura offered $141.33/MT lower on that route for diesel! At a glance a lay person would be like wow lets go for that price! But lets analyse further…
The price offered by Trafigura at $188.76/MT on the Dar es salaam – Lilongwe route for diesel based on the read-out price is actually much lower than the price of freight (haulage of fuel for the same route) which is at $194.78/MT.
The price offered by Trafigura (MERA preferred supplier and comparator leading to the $50,000,000 difference) is also actually lower that the diesel FOB prices for September, October, November 2020 (the bid period) on the Dar es salam route which were at $394.28; $379.77 and $379.77 per metric tonnes respectively.
Fellow Malawians, It is therefore as impossible as a camel going through a needle’s eye for anyone and even Trafigura to deliver diesel from Dar es salaam to Lilongwe at the rate that of $188.76/MT;
Then why is MERA pushing these comparisons based on unrealistic figures especially when they were not part of the evaluation team which the law gives to the procurement entity in this case NOCMA?
Now here is the Catch! Trafigura on the 23rd September 2020 signed an MOU on the Minister of Energy on the basis of the NOCMA tender.
Remember that tender was floated on the 17th September 2020; and the Minister of Energy had five (5) days later already negotiated to offer Trafigura the tender;
Allow me to quote an interesting clause in the agreement that was championed by the Minister of Energy which hopefully help the so-called patriots (very misinformed at this point) to appreciate why Trafigura were ok to offer a price below the World oil prices for delivery to Malawi.
“Further to the meeting held in Lilongwe, Malawi this memorandum sets out the agreed business proposal;s
Subject to competitive offer via tender process, Trafigura to supply the National Oil Company of Malawi (NOCMA) with Gasoil and Mogas delivered at different NOCMA terminals in Malawi, Trafigura to take part in the NOCMA Ex-tank tender, but parties to seek to agree a delivered price to be mutually agreed basis being the tender value plus logistical costs between all parties…
So you see it was agreed in advance that Trafigura offers very low prices (referred in the agreement document as competitive offer; And that this would allow for price negotiations to take place after the offer made through the tender which would allow them to charge realistic prices under the guise of “logistical costs” thereby taking into account their agreed figures as the cut from the deal; By the way this agreement was signed without NOCMA’s Board of Director’s or management’s knowledge and not even without the PS’ knowledge;
We have established that when the Minister tried to loop in the Acting CEO soon after the NOCMA’s CEO, Mr. Dulla arrest, (who was one of the master-minders ); she refused and hence the numerous vilifications and attacks on her and her management team since;
The Minister’s strategy shifted and he managed to loop in MERA to support his clandestine activities, and they fit well being responsible for the fuel pricing adjustments and manipulation of the fuel stabilization, as they would support the adjustment of the Trafigura low rates once they got the tender;
MERA’s new Board Chairperson Leonard Chikadya jumped at the opportunity and looped in MERA’s cashgate suspect Acting CEO Ishmael Chioko; and Chimwemwe Dunkalo the Director of Economic Regulations to support finishing NOCMA;
These have since worked hard and spent a lot to give NOCMA a hard time and stop the fuel supply process which followed the right public procurement process;
Seeing that NOCMA Board authorized management to proceed in the public interest as the main importer of fuel in the Country, MERA has gone to town publishing fake figures in favour of Trafigura to bring this public on its side!
There is nothing toxic about the fuel procurement process undertaken by NOCMA that is why PPDA working with ACB; then Government Contracting Unit and Ministry of Justice approved the process after independently reviewing the all the documentation including the evaluation reports;
So the $50,000,000 figure being paraded by the compromised regulator MERA is nothing but a lie!