Exposed! How Gaffer brothers’ IH broker leaped illegals fees, monopolizing fuel haulage in Malawi
BLANTYRE-(MaraviPost)- This is exclusive exposure on how sole International Haulage Brokers (IHB) has been defrauding the state as well as exploiting local fuel transporters to an extent that the issue attracted the attention of Parliamentary Committee on Energy (PCE) which duly proved the illegality of such brokerage fees.
It’s sad that most Malawians are not fully conversant with the reigning abuse of taxpayers in the name of brokerage fees by IHB.
Just to enlighten those not familiar with the execution of the dirty IHB scheme, here is a chronological synopsis of the firm’s illegality.
There is an illegal and fraudulent agreement between Malawi Regulatory Authority (MERA) and IHB in which the latter is mandated to coordinate fuel transportation business in Malawi.
IHB belongs to Gaffer brothers, Rashid, who is former Minister of Energy, and Aslam which has been operating as semi-god in the fuel haulage for the past 30 years while amassing billions of Malawian kwacha to themselves.
Local fuel transporters have persistently complained about the exploitative conduct of IHB that never heard with past regimes.
Poor local transporters are duped in many ways including deduction of fuel loses from their payments, hefty satellite tracking charges, deliberate delays in payment so that transporters can access loans from the same IHB but with exorbitant interests.
The persistent complaints by IHB captured the attention of Parliamentary Committee on Energy which summoned multiple stakeholders in the transport and energy sectors to learn more about the fuel haulage services.
Among the stakeholder representatives in attendance included MERA, NOCMA, PIL, FTOA, Ministry of Energy, Ministry of Transport and Malawi Cargo Center.
When Parliamentary Committee on Energy inquired about the legality of brokerage system, MERA indicated that it wasn’t within their institutional legislation. This simply means it’s illegal.
When quizzed further as to why MERA is entertaining brokerage system when they are pretty sure that it’s illegal, the energy regulatory institution gave a feeble excuse, they simply blamed it on old crop of employees, arguing that they already found the system in place and operational at the time of their respective recruitment.
Parliamentary Committee on Energy was also keen to know the source of funds which IHB is paid, in response MERA divulged that it comes from a certain fee on pump price known as Fuel Price Buildup levy.
When quizzed about the legality of this fuel levy, MERA told PCE that it’s not within the institutional legislation the energy regulator.
What is the aftermath of ascertaining illegality of IHB brokerage fees? Ideally and rationally MERA could have implemented PCE findings by abolishing illegal brokerage system.
But alas, Gaffer brothers firm is continuing enjoying illegal brokerage fees defrauding the state and exploiting local fuel transporters in the process. It has also been established that some few local transporters close to Gaffer are benefiting from the illegal brokerage system.
These beneficiaries are simply Gaffers errand boys who make a lot of noise in support of system.
IHB’s exploitative behavior is simply frustrating implementation of the government’s new Public Procurement and Disposal of Assets Act, which prioritizes local Small Medium Enterprises (SMEs) in the awarding of contracts.
It has been understood that MERA through PIL has paid IHB over MK7 billion as brokerage fee for the past two years. This money is charged to Malawians each time they buy fuel at the pump for every litre. This scheme of stealing from Malawians through brokerage fee is as devilish continues happening in the country.
The Gaffer brothers are paid brokerage fees on top of their freight costs as well as losses they claim under Ex-tank.
The coming of President Lazarus Chakwera’s Tonse government has managed to listen to fuel transporters for inclusion in the business.
Transporters Association of Malawi has commended Chakwera’s Tonse administration decision of trusting them with transporting fuel from Tanzania, a business which has wholly been in the hands of one broker.
Secretary General for the Transporters Association of Malawi Sympathy Chisale told the news conference on Friday, May 6, 2022 that the associations including Transporters Association of Malawi, Women in Logistics and Large Suppliers (WOLLSS), Road Transport Operators of Malawi (RTO) and TA2016 have capacity capacity to transport the country’s fuel products from the ports of Beira in Mozambique and Dare salaam in Tanzania.
Chisale revealed that the associations have ready to send 400 fuel tankers to port of Dare Salaam to haul fuel products to demonstrate that they have the required capacity to do the work.
He said Malawi Parliament had faulted the arrangement where a fuel blocker was monopolizing the transporting of fuel products into the country.
“We believe if local transporters are encouraged to participate in the hauling of fuel products into the country, they will help to create jobs for many Malawians as it has been the agenda of government to create 1 million jobs for Malawians,” Chisale stated.
IHB owned by the two brothers, Aslam Gaffar of Zagaf and Rashy Gaffar of Rashy Motors need to be investigated for been involved in getting illegal money from the fuel pump price through PIL.
