ACB Closing In On Joyce Banda’s Abuse Of Power Over Nigerian Crude Oil Deal

Joyce Banda abused her power on the oil deal

Joyce Banda abused her power on the oil deal

 

Graft bursting body in Malawi, the Anti-Corruption Bureau (ACB) has commenced investigations on former President Joyce Banda in relation to US$1.2 million royalties Malawi earned from Nigerian crude oil deal which Malawi Independent understands Joyce Banda abused her powers.

According to a document in our possession, Malawi in 2013, under Banda’s reign, earned US$1,256.081.70 as royalties from crude oil deal it signed with Nigerian government in May 2012.

The crude oil sale agreement spanned from May 1st, 2012 to April 30th, 2013, and the royalties were transferred into National Oil Company of Malawi (Nocma)  Foreign Currency Dominated account for crude (Afcda) maintained at National Bank of Malawi.

Government was forced to contract Nocma to service the deal as an agent since it was unable to secure US$120 million required to purchase the crude oil.

Under the government-to-government deal, Nigeria agreed to supply Malawi with crude oil through the NNPC and allowed Malawi to either process or sell the crude, thus-as a buyer-after paying upfront $2.5 million (then over K1 billion) before making first uplift of the oil.

The contract gave Malawi approval to buy and sell 30 000 barrels per day of crude oil made up of several grades as specified in the lifting schedule for each month. This means that, effectively, the country was at liberty to buy and sell over half a million barrels a month.

The crude oil deal was signed by President Banda who pushed for the contract, first initiated by late Mutharika in his attempts to solve chronic fuel shortages that rocked the country under his administration.

In November 2012, Petroleos De Geneve SA Limited (PDG) managing director Raymond Anyiam-Osigwe told Malawi’s daily that Lilongwe was getting US0.4 cents in royalties per barrel, which he said totaled $760 000 (over K300 million) by then.

 

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