MCCL yet to service NOCMA’s K1bn loan

The National Oil Company of Malawi (NOCMA) has disclosed that it is facing challenges to recover about K1 billion from Malawi Cargo Centre Limited (MCCL) that was used for rehabilitation of its facilities in Dar es Salaam, Tanzania.

NOCMA Deputy Chief Executive Officer Helen Buluma has told the Parliamentary Committee on Natural Resources and Climate Change that MCCL was supposed to start repaying the loan from 2018 throughout to 2022.

Reacting to the development, the Committee has asked the Ministry of Energy to take over ownership of Centre.

“You know MCCL was constructed by the Malawi Government money, but first is being run by private person, so we have the Ministry of Energy to take ownership of MCCL.

We have also encouraged NOCMA and Petroleum Importers Limited (PIL) to think of maximising the use of Mbeya Depot so that the cost of transportation of fuel can be reduced,” said George Million, the Committee’s vice Chairperson.

Reacting to the development, Principal Secretary in the Ministry of Energy Patrick Matanda said government will intervene on the issue at an appropriate time.

“We are hopeful that agreement that they signed still have to be honoured by the other campaign, so we are hoping that NOCMA will be funded their money.

“Maybe when they have reached a dead end where may be there will be need for the Ministry to get involved but as of now I think we will allow the agreement that they signed to take effect,” he said.

Matanda has however disclosed that the Ministry will only come in to help where NOCMA will not be able to get its money refunded.

The funds were supposed to be paid back in a period of five years.

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