Lilongwe, Malawi – The Malawi government has escalated tensions with French energy giant TotalEnergies, demanding a staggering US$4 billion (approximately 7 trillion Malawi Kwacha) in compensation for an alleged breach of a long-standing fuel supply contract.
The dispute centers around a 2001 agreement between Total Malawi Limited, a subsidiary of TotalEnergies, and Prima Fuels.
“The Malawi Government is demanding four billion US dollars from a fuel supply agreement between Prima Fuels and Total Malawi Limited for breaching a rebate contract on fuel arrears equal to 50 per cent of retail margin on every litre of fuel” reports Zodiak Online.
The Malawian government claims that Total Malawi Limited has failed to fulfill its obligations under the contract,which granted the company exclusive rights to supply fuel to the government.
TotalEnergies has vehemently denied the allegations, asserting that it has consistently honored its contractual commitments. The company has accused the Malawian government of attempting to extort a significant sum of money.
Total has 14 days to issue the payment to Malawi, a country in Southern Africa.
