Tight-lipped Govt brings back Helen Buluma in a secret govt-to-govt fuel importation deal with Kenya

Government has faced increasing scrutiny over its handling of a recent fuel importation deal with Kenya, with insiders revealing that Helen Buluma, the former acting CEO of the National Oil Company of Malawi (Nocma), has been reappointed to lead an advisory team overseeing the ongoing fuel crisis.

The reappointment of Buluma, who was controversially dismissed by the Nocma board in 2022 due to irregular recruitment processes, comes as part of a secretive and opaque government-to-government agreement signed with Kenya to address Malawi’s severe fuel shortage.

The agreement, which was signed on November 5, 2024, by Malawi’s Minister of Energy, Ibrahim Matola, and Kenya’s Cabinet Secretary for Energy, Opiyo Wandayi, has raised several questions about the transparency of the deal, especially given the exclusion of key figures from Malawi’s energy sector during negotiations.

A Deal Shrouded in Secrecy

The memorandum of understanding (MoU) between Malawi and Kenya is touted as a potential solution to the ongoing fuel crisis in the country, which has seen prolonged fuel shortages and rising prices.

However, sources within the government have revealed that the deal was negotiated without involving key policyholders, particularly those in the Ministry of Energy, the Malawi Energy Regulatory Authority (MERA), and the National Oil Company of Malawi (Nocma).

Reports indicate that Minister Matola, accompanied by State Residences Chief of Staff, Prince Kapondamgaga, signed the deal in Kenya, with the crucial details of the agreement kept from key government officials at Capital Hill. According to sources, senior figures such as Nocma CEO Clement Kanyama, Nocma Chairperson Colleen Zamba, and MERA’s Henry Kachaje were only briefed about the deal a week after it was signed.

When approached for comment, senior officials including Matola and Kapondamgaga refused to address concerns, with Matola’s spokesperson directing inquiries to the Ministry of Energy, but no further details were provided.

Helen Buluma’s Controversial Return

In one of the most controversial elements of the deal, former Nocma CEO Helen Buluma has been brought back into the fold to chair the newly formed advisory committee tasked with managing the country’s fuel crisis. Buluma’s reappointment raises eyebrows given her contentious exit from Nocma in 2022, after the Ombudsman, Grace Malera, ordered her contract be nullified on grounds of unlawful and irregular recruitment practices.

Despite this, the government has now appointed Buluma to oversee key decisions about the fuel crisis, a move that is seen by critics as an attempt to bypass existing procedures. Buluma’s reappointment, reportedly made in secret, has sparked concern within the energy sector, with some insiders warning that it could cause internal friction among the various committees and undermine the efficacy of the deal.

Buluma has not responded to requests for comment regarding her new role, nor has she clarified the progress of her advisory team. However, her reentry into the sector is being viewed by some as part of a broader strategy to centralize control of the fuel supply negotiations, despite her controversial past.

Concerns Over Transparency and Inclusivity

Energy experts and political commentators have expressed serious concerns about the lack of transparency and the exclusion of key figures in the energy sector from the deal. Grain Malunga, an energy expert, described the situation as “irregular,” stressing that all stakeholders should have been involved in a decision of this magnitude.

“It is concerning that critical officials from the Ministry of Energy and Nocma were sidelined during the negotiation of this deal,” Malunga said. “This arrangement requires cooperation from all stakeholders to be effective. Transparency is key to ensuring that the agreement benefits the country and resolves the fuel crisis.”

Other sources close to the deal have raised alarms about the potential for corruption and mismanagement, citing the lack of clarity about how the fuel will be financed, especially given Malawi’s ongoing foreign exchange challenges. The government’s current suppliers are owed millions of dollars in open credit, and it remains unclear how this new deal with Kenya will impact existing contracts.

The Deal’s Potential Long-Term Impact

While the MoU signed with Kenya promises to strengthen the two countries’ petroleum sectors and ensure a stable supply of refined petroleum products, there are serious concerns about the long-term sustainability of the arrangement. The government has yet to clarify how it will secure the funds needed to pay for the fuel, with ongoing foreign exchange shortages posing a significant hurdle.

The secretive nature of the deal, combined with the controversial reappointment of Helen Buluma, has led to increasing speculation that the government may be more focused on political maneuvering than on finding lasting solutions to Malawi’s energy challenges.

Political analyst Wonderful Mkhutche commented, “While the government may believe that this deal will provide short-term relief, the lack of transparency and failure to involve key stakeholders raises serious questions about its long-term effectiveness. If the government truly wants to address the fuel crisis, it must be more open and inclusive in its decision-making processes.”

Next Steps for the Fuel Crisis

As the government moves forward with its new deal with Kenya, it will need to ensure that all stakeholders are involved, and that proper procedures are followed. The fuel crisis has caused significant hardship for Malawians, and while the MoU may provide some short-term relief, a lack of clarity on key issues such as financing and supplier management could undermine the potential benefits of the deal.

For now, Malawi’s energy sector is at a crossroads, and the government’s next steps will be crucial in determining whether the MoU with Kenya leads to lasting solutions or simply prolongs the country’s ongoing fuel crisis.

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