Parliament on Tuesday handed the Liquid Fuels and Gas (Production and Supply) Act (Amendment) Bill, paving the way in which for government-to-government gas procurement. While the federal government insists the transfer will stabilize gas provide and lower prices, the opposition has warned it might result in monetary abuse and unchecked ministerial energy.

The amended Act removes government-to-government gas procurement from the oversight of the Public Procurement and Disposal of Assets (PPDA) Act of 2017. It permits the Minister of Energy to nominate brokers or State entities to deal with procurement with out adhering to conventional tendering processes.

Section 5(6) of the amended Act now explicitly states:

“The Public Procurement and Disposal of Public Assets Act shall not apply to the government-to-government fuel supply arrangement.”

Minister of Energy Ibrahim Matola mentioned the modification eliminates intermediaries, permitting Malawi to buy gas immediately from oil-producing nations and refineries corresponding to these in Saudi Arabia, Oman, and Bahrain.

“The fuel will be cheap once the middlemen are taken out of the picture,” Matola assured Parliament.

He additionally confirmed that Petroleum Importers Limited (PIL), a consortium of personal oil advertising corporations, will nonetheless provide 40% of the nation’s gas in accordance with the legislation.

The Democratic Progressive Party (DPP) and the United Democratic Front (UDF) strongly opposed the modification, citing fears of abuse and lack of accountability.

Bright Msaka, the DPP spokesperson on authorized affairs, accused the federal government of making loopholes for corruption.

“This will place the minister above the law and create room for public officers to steal,” he mentioned.

Esther Jolobala of the UDF argued that the gas disaster stems from persistent international alternate shortage reasonably than procurement inefficiencies.

“Even if we have additional legislation, how are we going to pay the other governments if we don’t have forex?” she requested.

President Lazarus Chakwera has championed government-to-government offers, asserting that they may safe higher fee phrases and decrease costs. Malawi is already making ready to leverage Kenya’s procurement system to supply gas from Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil whereas establishing its personal preparations.

Despite authorities assurances, critics stay skeptical. Msaka highlighted the dangers of concentrating procurement energy within the fingers of 1 minister, whereas political analysts have warned that eradicating PPDA oversight might result in corruption.

While the federal government believes government-to-government procurement will remedy Malawi’s gas disaster, opposition leaders and analysts have expressed doubts about its transparency and effectiveness. With the legislation now in place, all eyes can be on its implementation and influence on the nation’s perennial gas shortages.

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