Foreign companies scoop all Escom tenders: Locals bitter

Despite Indigenous Businesspersons Association of Malawi’s (IBAM) request to suspend the National Competitive Bidding (NCB) tenders, the Electricity Supply Corporation of Malawi (Escom) has awarded contracts to companies owned by Malawians of Indian origin, NCB results have shown.

Mlomba : Local investors need to be empowered

Mlomba : Local investors need to be empowered

The development has further irked local business persons who are accusing the Corporation of flouting procurement procedures and for awarding contracts to foreign companies at the expense of indigenous business operators.

The local investors also claim that the “foreigners have scooped all Escom tenders” because of the better financial muscle they use to bribe Escom tender committee at the expense of poor Malawian companies who only promise to pay when the deal is done.”

“Escom officials are corrupt and have failed to listen to our grievances. We don’t need the favours, we need to be accountable and transparent and do the bidding process in the best interest of all business operators,” said one of the disgruntled local business operators.

In April this year, local businesses, through IBAM,  asked Escom to detail the criteria it used to award the contracts to foreign companies.

“Much as we know that we cannot compete with the manufacturers in prices and other ratings, we will appreciate total transparency of the whole system.

“It is for this reason that IBAM would like to seek an audience with all concerned parties as copied in this letter to express its concerns and to be furnished with information on how Malawians failed to get through the process so that in the future we should be able to compete well.

“At the same time, we request that the process of awarding the  contracts be paused until our views are considered,” said IBAM President Mike Mlombwa in a letter dated 29 April 2015 and addressed to Escom’s Chief Executive Officer and copied to the Anti-Corruption Bureau (ACB) Director, Chairperson of Escom’s Internal Procurement Committee and the Director of Public Procurement—ODPP.

IBAM issued the letter following reports that the Corporation was awarding contracts to foreign companies secretly.

He said no economy can grow by excluding any part of its people, and an economy that is not growing cannot integrate all of its citizens in a meaningful way.

Mlombwa asked government to intervene for justice and transparency to prevail in these tenders for the betterment of local business operators.

“This tendency of who has the money gets it all must stop. It’s high time government and policy makers came up with policies would support and enhance local businesses because they cannot externalize forex as the case with some foreign investors.

“We require policies that can meet the needs and advance the interests of all local investors in a sustainable manner. Its high time our economy was built on the full potential of all local investors and their enterprises by rolling out growth strategies targeting local indigenous businesses as it is done in other Africa countries like South Africa,”  said Mlombwa.

According to bidding documents for the procurement of goods by NCB, tender—procurement reference NoESC330/NCB/G/FY2014-15 (Subject of Procurement: Supply and Delivery of Distribution Materials)—was issued on November 14 2014 and closed on December 5 2014 at14:00hrs.

While results for International Competitive Bidding(ICB) —procurement reference No ESC198/ICB/G/FY2013-14(Subject of Procurement: Supply and Delivery of Line Hardware and Accessories)—are not out.

According to sources, ICB results will be out once vetting process being done by the Office of the Director of Public Procurement (ODPP) is concluded.

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25 thoughts on “Foreign companies scoop all Escom tenders: Locals bitter”

  1. Goodwill Funeral says:

    Bola ife we rely on dead people the more you die the more revenue we make. No tender nothing. When u die there is no time for tender and bidding. Malawians come and do this business. Its good. Stop fighting with Escom.

  2. Mlombwa says:

    I fight for people and not for myself. Escom ikulakwa.

  3. John says:

    its true that govt needs to support local companies. But wait a minutes, these are the same people who were inflating figures for the tender to repatriate Malawians from RSA following the xenophobia. RSA companies ere charging K3.9 million per bus and yet Malawian bus companies were demanding K8.1 million for the same work.

    So how can you be considered? Musiye katangale ku IBAM. Olo biii muzingolira! Ndalam mumapangira matama kugula mpando kuti mukhale pamodzi ndi president wherever there is a function.

  4. Careful Banda says:

    Can we really say that we have the expertise???!!! IBAM make much noise but represent no value on the table.. we need more serious people than these

  5. Mama malawi says:

    Shut up iwe mlombwa
    You wanted govt to hire your buses at 30 million per trip to ferry our fellow malawian brothers and sisters from joni while foreigners quotes 7 millioni per trip.
    That is 4 times higher than what these foreigners charged our goverment
    This is what you call Daylight robbery from our own cash strapped government coffers
    These so called IBAM consist of a few greedy individuals including mlombwa who enrich themselves by obtaining loans from MSB and want poor malawian taxpayers to pay their back their loans.
    Mbava mlombwa speaks for these few greedy individuals.
    Why cant they build schools and hospitals in our districts and drill boreholes and build factories that will employ our fellow malawians,
    To hell with you..
    We need educated peepo at IBAM not hopeless not disgruntled peepo always complaining about foreigners.

  6. Tili Chenene says:

    In fact, some of us have tried ton deal with indegenous businessmen. The result shows that if you want timely and perfect job engage non Malawians but if you have enough room of compromising quality, time and cost go indegenous

  7. Hot Topic says:

    Escom officials stop commenting nonsense. Who does not know that some of u have foreign bank accounts where foreign companies drop off money? Amwenye a Malawi ndiye onse akuba very corrupt. Lido electricals eish mbava. Ask Malawians if they can match what Indians and make a deal or evaluate proffesional.

  8. golo says:

    I don’t understand Mr Mlombwa here. So he is admitting that you cant get a contract without bribing whether you are an indigenous Malawian or not.He also says foreign companies get all the contracts yet he is saying Malawians of Indian origin are getting the contracts ….so being Malawian of Indian origin is being foreign….Mr Mlombwa kukonda kulira pena pali ponse…..Do a proper before bidding , don’t just say its corruption when you are not awarded a contract.

  9. golp says:

    I don’t understand Mr Mlombwa here.He says Malawians of Indian Origin have financial muscle to bribe before a tender is won but indigenous Malawians give after being paid. So he is admitting that you cant get a contract without bribing whether you are an indigenous Malawian or not.He also says foreign companies get all the contracts yet he is saying Malawians of Indian origin are getting the contracts ….so being Malawian of Indian origin is being foreign….Mr Mlombwa kukonda kulira pena pali ponse…..Do a proper before bidding , don’t just say its corruption when you are not awarded a contract.

  10. Ntchona says:

    Malawian companies also compromise on quality

  11. Saludzai says:

    Malawians kumana komaso kutumbwa.. mutha choncho.. kukupatsani business mawa muyambe kutithawa thawa mwati aa mbola iyi imafuna ndiyigaileko ndalama at bcoz anandipatsako business. Azitenga business amwenye omwewa… the prices are fair and they have quality goods than zanu za counterfiet mumagula ku tanzania.. Anyone protects his job… Komanso you take too much time to deliver goods mkusauka kwamatama kwanuko

  12. Mgawadere says:

    apange akunja kumene inu ndalama mumangopeleka ku zipani and ngongole simubweza agalu inu khalani choni basi

  13. Hon Banda says:

    Its not true that Malawians were expensive. Malawians have no money zonyema ku escom kuposa amwenye. Pay Kandapo handsomely and you get awarded. Malawi at 50 woyeee.

  14. Olobodoka says:

    Khani apa kubelana basi kodi tizingokhalira kumva iwe basi stupid…….

  15. CHEJALI says:

    Kkkkkkkk mikheeeee ukufunanjiiii
    kodi usatinyase ife

  16. True Frames says:

    Giving orders and contracts is tantamount to creating what in Economics we call Deadweight Loss. The income derived from such contracts is always externalized by the these unpatriotic foreigners- in particular Indians. I call all Malawians never to give any contracts/orders to Indians- for once let’s resist their money- which corrupts us- refuse any gifts/ donations from any foreigner. It must start with the president setting the right tone, with all of us following. I cry for my country

  17. chinkombaleza gumanyundo gowa says:

    What matters is expertise and financial muscle not of which origin. Most Malawian companies would want to harvest where they have not planted and at times they would also want to get much much more than what they have invested (more than hundred percent profit but not well done jobs. Market now a days is open to the world and very competitive. Work hard you will get it next time.

  18. HTD says:

    Mlombwa has a point, this was NCB (National competitive bidding) local companies should have featured highlu unlike the ICB (International competitive bidding) where international companies are expected to feature. Yes corruption is at play here, a Malawi kunfinyana tokha tokha

  19. citizen okwiya says:

    IBAM says “local investors do not have financial muscle to pay bribes before they win tenders but after tender has been won”.

    This man (Mlombwa) is stupid indeed

  20. Viva says:

    Mike Mlombwa…IBAM president for life!!!

  21. peter muthanyula says:

    Malawian industries price themselves out. Kuba too much, kufuna kulemera with just one transaction. No idea of how to reasonably price stuff. Mukhala choncho.

  22. Namatchaitsa says:

    A Mlombwa simungadzimvetse izi za procurement procedures!

  23. Mpoto says:

    Those that formulate the laws are stupid and corrupt. You cannot allow just one institution to the the producer and retail seller of the products.

    ESCOM sees itself as invincible and that it will exist in its current form for life. There is gross incompetence and massive corruption at this lotting body.

    Here in the north, we don’t need escom. We need other competent players to come and compete with this useless body. We need those institutions that can deliver and not steal for customers.

    If you want to how weak escom is, do to it as you did with Shire buslines.

    I hate these corrupt people. Just in a space of six months, MK40 bn has been transferred to FDH bank, for what use. This is pure theft.

  24. Patriot says:

    A Mlombwa mwasowa khani.
    Kodi mukamawina nokha nokha ti ma tenders ku boma pansi pa DPP alipo amadandaula?
    Companies owned by african malawian origin one have no financial muscle and two have no expertise.
    Amalawi lazy too much.
    No offense.

  25. mdabwii says:

    Munyanya kudula a Malawi. Your pricing is too high. Mukawina ka bid mutinyase ndi tima range rover agaluinu. Mike sunafebe? I cry for my sisters…..

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