Chikadya’s resignation exposes deeply rooted Corruption in fuel industry

The recent resignation of the board of directors for Malawi Energy Regulatory Authority (MERA), especially the board chairperson, Leonnard Chikadya, has unearthed disorganization within the institution as well as deeply entrenched corruption in the fuel procurement process.

The mass resignations have raised some of the red flags this publication has always highlighted in its previous reporting.

Some findings by this publication revealed that shady deals in the fuel procurement sector have always gone unchallenged.

In his leaked resignation letter, Chikadya highlighted that Office of President and Cabinet (OPC) through the Secretary to President and Cabinet (SPC) holds major powers within the institution.

In his letter, Chikadya mentioned that, apparently, there are Premiums that are supplying fuel without contracts.

“There are NOCMA Premiums fuel contracts that have not been approved by the MERA Board to date, and yet NOCMA is receiving fuel supplies with premiums that remain unapproved. The MERA Board refused to grant such approval on account of the uncompetitive premiums, which would unduly burden Malawians with frequent fuel pump price rises;” reads part of the letter.

Chikadya also referred to one of the recommendations by the Public Appointments Committee (PAC) which states that having SPC as chairperson in many organizations was a serious governance anomaly.

Last week, the SPC recommended to PAC removal of the board on grounds of incompetence in a manner it recruited Henry Kachaje as MERA Chief Executive Officer (CEO).