The Malawi Energy Regulatory Authority (Mera) board has fired Chief Executive Officer (CEO) Ralph Kamoto and finance director Elias Hausi over allegations of corruption.
The two are alleged to have diverted K2.964 billion from the Price Stabilisation Fund (PSF) to buy maize for the Agricultural Development and Marketing Corporation (Admarc).
The Mera board met on February 24 2015 and resolved to buy 10,000 metric tonnes at a cost of K2.964 billion to be sent to Admarc for sale in its markets.
Initial reports said then the Mera board on 24 February 2016 resolved to purchase 10 000 metric tonnes of maize at a cost of K2.964 billion to be sent to Admarc for sale in its markets, according to a letter dated 25 February 2016 from Mera to Secretary to Treasury and copied to Chief Secretary, Office of the President and Cabinet and Mera board chair Dingiswayo Jere.
But Finance Minister Goodall Gondwe said the decision was illegal and disclosed that the matter was being investigated, claiming Treasury did not authorise the payment .
Government has no mandate to use money without the authorisation of Parliament except in very special cases under the Public Finance Management Act.
Kamoto was then sent on forced leave and was replaced by Welton Saiwa as acting CEO. He was director of electricity and renewable energy until this appointment.