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Extractive Industries/Mining/Oil & Gas
Ras Al Khaima, United Arab Emirates
Nationality of Foreign Officials: Malawi
Summary of Allegations:
In May 2014, the Malawi government entered into production-sharing agreements with RAK Gas MB 45, a subsidiary of RAK Gas, for two oil blocks. The agreements were signed before proven oil reserves were discovered.
A payment of 89 million Malawi kwacha (USD 235,700) was made to the Reserve Bank of Malawi's account for the mines department before exploration licenses were distributed to RAK Gas. RAK Gas has argued that the payment was for annual ground rent and licence fees.
RAK Gas also made a payment of USD 5 million to President Joyce Banda's Mudzi Transformation Trust, an organization that builds and renovates houses for the poor. The payment was made before the election in May 2014. RAK Gas has argued that the donation was made as part of the company's corporate social responsibility program.
Approximate Alleged Payments to Foreign Officials: USD 5,235,700 in payments and donations
Business Advantage Allegedly Obtained: Production sharing agreements for oil blocks in Malawi
Agencies: Malawi: Anti-Corruption Bureau
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
The Malawi Anti-Corruption Bureau is investigating the unexplained payments.
Discovery Method: Discovered from separate investigation
Details:
Independent consultants discovered a wire transfer of USD 235,700 to the Reserve Bank of Malawi during an examination of the Reserve Bank's accounts.
Country: Malawi