Audit exposes ‘Apumbwa’ in K9.3bn abuse: Misprocurement at Escom, Admarc

Electricity Supply Corporation of Malawi (Escom) and Agriculture Developmeny and Maeketiv Corporation ( Admarc ) are again in the spotlight for abuse of public resources as Auditor General’s report show the two State-owned institutions abused K9.3 billion through doggy procurement transactions.

Chief Secretary to government Lloyd Muhara:  Advised to immediately stop the laxity in State owned institutions

The audit report of the fiscal year 2016/17  – prepared by former Aiditor General Stevenson Kamphasa – indicate that the two State enterprises failed to account for the billions of Kwacha.

Escom mess

It indicates that Escom ordered goods valued at  K8.3 billion from about 23 suppliers without following internal procurement procedures and without the knowledge  of key management .

“Out of the K8.3 billion ordered items, the Corporation only needed K3.2 billion of the items ; rendering the remaining K5.1 billion useless,” says the report on part.

The power utility continued to acquire the old three-phase meters despite embarking on a project to migrate customers from post-paid to prepaid  billing through introduction of meters mounted on electricity poles to phase out the old three-phase system, according to the findings of the audit.

“A total of 24 550 meters valued at K1.8 billion were received in March and April 2019, But only 330 items valued at K23 million were issued from stores in the last 12 months to June 2017,” reads the report.

Escom board chairperson Thom Mpinganjira told a news conference recently that  “there were serious misprocurement process” at the Corporation.

Admarc rot

The report indicates that  Admarc failed to express to the auditors the whereabouts of K4.2 billion which it had claimed was used to purchase maize and other items in the year under review.

There was no proof from the State produce trader on the delivery for the saud maize and other items, the audit says.

“The auditors were unable to obtain sufficient and appropriate audit evidence to ascertain that quantities relating to purchases valued at K3 billion were fully received.

“Included in the cost of sales is an amount of K1.2 billion that could not be explained by management,” reads the report.

Parastatal ‘abominations’

An editorial comment in Malawi’s leading daily newspaper, The Nation, has focused on the story, staring that the abominations that most State-owned institutions such as Escom and Admarc continue to commit are not only unfair to taxpayers who shoulder the costs of the wrong decisions, but also to the people of Malawi who are denied  good services because of wrong procurement.

“How can Escom throw away K5.1 billion due to wrong procurement when the country is struggling to buy food, drugs and fuel for ambulances in public hospitals?”  the paper queried.

It pointed out that it is saddening that there is little or nothing government is doing to bring sanity in these institutions, by, among other things, prosecuting the controlling officers.

“Why does government treat employeees who abuse public resources  with kid gloves? Surely, there is more to these wrong deals than meets the eye,” the paper said.

The paper  urges government to “immediately stop the laxity” in State owned institutions such as Escom and Admarc, warning that, if left unabated, the looting will continue to derail the country’s development agenda.

 

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

  Subscribe  
newest oldest most voted
Notify of
Mahule 1,000,000 jobs party
Guest

By voting Alamu Pumani Mwakalamba , many thought he would bring American standards to Malawi. Issues of theft are unheard of in America. In China APM and many others would have been executed. In South Korea a woman president is serving a long jail sentence for theft. Koma kwathu kuno zopusa. This APM is shithole. Useless. That is why I won’t for dpp and utm.

Kukondera
Guest
Kukondera

God is watching all looters. Akulangani muona

Chizomba
Guest
Chizomba

And this is what Ben Phiri, Jeffrey and Dausi refers to as DPP Development (Chitukuko) of Malawi. I understand their ignorance BUT APM with his American exposure…I am baffled to see him still standing for 2019 Presidential race as well as STILL continuing with office with allegations of 145 Million Kwacha on his head. One can understand DPP supporters who have no reasoning power apart from following blindly without questioning themselves why they allow to be abused (blue paint & dancing) by rich top DPP brass…lack of education & exposure. Wake up DPP supporters Dzukani kunja kuno kwacha.

Victor Jumbo
Guest
Victor Jumbo

If I was Peter Mthalika I would have fired all crooks in the government and then resigned for letting down the poor Malawians. How can a sanity person like the president who is supposed to uphold the rule of Malawi law stoop so low and without mercy, overseeing the massive plundering of much needed money with which could have been used to buy medicine for our Hospitals and rural clinics, build more schools , train and employ more teachers and doctors to improve the lives of all Malawians. Corruption and favouritisms in employment are some of the worst things that… Read more »

Truth Shall Free Malawi
Guest
Truth Shall Free Malawi

The buck stops with the Minister. A s Atuple Muluzi wants to be President, let him explain his deals at Escom with sons to Gani?
Equally the big buck stops with OCTOGENARIAN APM who wants to hold on to office for life- let him explain his negligence and arrogance too!

Wa Mwale
Guest
Wa Mwale

Apumbwa, at work, there is more than this in this gvt of Professor because all the officers in all these parastatals are his children they seat and he gets kickbacks to every contract and supply eshiii its only the genuine change we need to help bring sanity not people who are just changing colors but are the same people looting, they were in UDF, moved to DPP then pp and some are now moving to utm, the same peoples… Ayi

Silica Gell
Guest
Silica Gell

I think the writer just want people to interact here, what does “apumbwa” mean?

Khima
Guest
Khima

One thing I saw in this country, we dont know how to solve problems. We tackle “cases” instead of the system that cartels the whole looting process. The moment Kamuzu (not that he was a saint) left mantha obela boma anathela pompo. From UDF government to the incumbent same conduits have been used how and again to drain makobiri a dziko. Noone has ever tried to deal with the system because they are always waiting for the right time nawo adzatole. None of the politicians will wholeheartedly tackle this cartel, its their personal and party lifeline.

Mzanga Dausi
Guest
Mzanga Dausi

Brian Banda – Kwagwanji: A Ben Phiri, anthu amati ndinu munthu wakuba, kodi nzoona?

bwengu
Guest

And these guys are busy telling Malawians that they have delivered on their promises. What i see is that by the time we vote next year in May, Every tambala will have been stolen and the next government will have to start from zero.

More From Nyasatimes