• August 9, 2022 5:47 am

Nankhumwa lies on fuel stabilization fund

Jun 26, 2022

Leader of Opposition Kondwani Nankhumwa lied to Malawians when he questioned Government on the resent fuel price increase and suggesting that there has been a misuse of fuel price stabilisation fund which could have been used to caution the hike.

Our investigation and analysis has however revealed that it was the Democratic Progressive Party (DPP) which messed up the fuel stabilisation fund and the since 2020 the Tonse Government has been working to build the fund again.

In a statement released soon after the fuel hike Nankhumwa said in this country, there is the fuel Price Stabilization Fund, which is meant to stabilize the prices of fuel and it was surprising that it is not being used to prevent the fuel price increase.

“Where is this money? Would the people responsible for this fund please account as to how the funds have been used over the past two years?

“I would like to urge relevant parliamentary committees to demand a report on how the Price Stabilization Fund has been used, and also a statement from President Chakwera on the same,” said Nankhumwa.

A source from Malawi Energy Regulatory Authority (MERA) raised a red flag on Nankhumwa’s statement arguing that the question on the Price Stabilisation Fund is being asked to a wrong person.

“Honourable Nankhumwa should be the last one to ask about the Price Stabilisation Fund because it was the previous administration which abused and depleted the fund.

“He would have asked Peter Mutharika why he let his people abuse this fund and the Malawi Energy Regulatory Authority. Everyone is aware that DPP withdrew a lot of money in the name of short term loans but never returned the money,” revealed the MERA official.

He revealed that some of the money from the Fund was allegedly loaned to ADMARC to buy maize but ADMARC or those responsible have ever made attempts to have the money refunded.

“At the moment there are cases in court where some of those involved are answering charges to do with the Fund. Let Nankhumwa stop stop this hypocrisy,” he added.

In his statement, Nankhumwa also attributed the fuel hike to the recent 25 percent devaluation of Malawi kwacha.

Nankhumwa also suggested that there is need to remove VAT on some of the products to curation Malawians since the devaluation and the fuel price increase will automatically lead to increase of prices for other commodities.

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