CDEDI presses for fuel contract screening, calls for immediate audit

By IOMMIE CHIWALO

Centre for Democracy and Economic Development Initiatives CDEDI) has called for immediate audit of fuel contracts as well as institute an investigation on conduct of immediate past board of directors for Concerned stakeholders.

Addressing the Press in Blantyre, CDEDI Executive Director Sylvester Namiwa said that the fuel situation may become more challenging due to negligence by the previous administration.

“This is the time-bomb that has been ticking as a result of the
Malawi Energy Regulatory Authority (MERA) owing the National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited K1.2 trillion through unfortunate decision by the recent-past MERA board to abandon the legally-instituted Automatic Pricing Mechanism (APM), which led to the depletion of the Price Stabilisation Fund,” he said.

Adding that K1.2 trillion in levies and under-recoveries, which arose from the difference between the higher landing cost and the lower pump price, was accumulated between May 2022 and November 2025 saying it was during that period fuel importers were operating at a loss because the MERA board compromised its mandate and yielded to political pressure, in violation of the law.

“As a result, Malawians paid the hefty price of the 41 percent fuel increase following the re-adoption of the APM in the process Malawians paid the price for entrusting power in the hands of clueless and incompetent individuals,” Namiwa elaborated.

He highlighted that apart from the persistent fuel crisis that led to the flourishing of the black market, Malawians may wish to know that they were indirectly subsidizing fuel prices in neighbouring countries since fuel was selling cheaper here.
“It started with the monthly bill for August 2025 shooting from 50 million litres to 81 million litres. Resultantly, this development worsened Malawi’s forex crisis,” he said.

Namiwa has since demanded from relevant authorities such as Public Appointments Committee of Parliament to summon
members of the recent-past MERA board members to exonerate themselves from criminal negligence for abandoning the Automatic Pricing Mechanism.

Through the Media address, the CDEDI Chief has also requested government to immediately institute a forensic audit at NOCMA and MERA to ascertain the K1.2 trillion under-recoveriese has also requested for an honest and candid talk on persistent Forex shortages saying even at the banking halls the foreign bulk is not trading at the official rate.