Escom launches probe into fleecing of money syndicate
Board chairperson for technically insolvent power utility Electricity Supply Corporation of Malawi (Escom), Thom Mpinganjira has said he has instituted a grand investigation to find out how some members of staff connived with the powerful ruling Democratic Progressive Party (DPP) officials to fleece the powerhouse huge sums of money which left Escom with a debt trap of K54 billion.
Mpinganjira told a news conference on Tuesday that the money was siphoned out of Escom through dubious procurement processes.
“Procurement procedures were not followed. There were serious misprocurement processes,” he said.
He said there were some items which were bought but were not needed and might not be used in future.
“This has negatively affected the operations of Escom. We will engage the state prosecuting agencies like the ACB and DPP,” said the accomplished economist and businessman.
Escom asked for a K54bn debt bail out from Treasury as the utility company is struggling due to inefficiencies.
Mpinganjira said: “We requested for the bail-out of around K50 billion because we are in a deficit of close to the same amount of money. Basically, we were not supposed to be in this position, but we are in this position due to mismanagement. Just in February [2014], we had a surplus of K18 billion, but we now face a deficit of K50 billion. This is due to bad procurement [decisions].”
The ruling DPP is accused of high level theft and corruption at Escom.
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One decision that the Government went wrong was to split ESCOM and GENERATION, should have waited for the full Implementation of the PRIVATE POWER PRODUCERS BILL and the rolling up of the PPPs to enable competition in the power sector to start, or should have waited for the completion of Kamwamba Coal fueled power station. The spliting has brought a lot of financial problems to ESCOM than EGENCO. EGENCO is just reaping where it did not sow because more of the debts in Escom were done mostly when it was one company and were for the GENERATION company. ESCOM is… Read more »
usatintyasepo iwe Thom chisiru chogulitsa chi khristu chako. mbuzi
Apa titha kunena kuti Amayi was a better leader than awawa.
And we thought it was bad in the UDF days; never did we imagine it could deteriorate to this level. This is a utility which, during the 80s and early 90s, could finance up to 30% of its capital cost from internal cash generation, and never made a loss. There was minimal interference during the days of autocratic rule, apart from imposing retired civil servants (but some of whom were good) and demanding transport for party activities. There was management competency and accountability; now management and politicians are bedfellows, and it’s poor management that lasts. If one tries to be… Read more »
Thom Mpinganjira is another sellout. He is the one who bribed ESCOM Management to use his bank to facilitate the generatos deal when all was being handled by National Bank. Again this corrupt ESCOM has transferred their main account to Mpinganjiras bank. So I feel whatever investigations his will institute will come out with nothing. His management just want to make silly out of us to see as if something is being investigated whilst is a paper tiger. POOR MOTHER MALAWI
Anyapapi mwatiwonongera ziko and please shame yourselves
Mesimadzi kumathokoza Mulungu kuti munanyambita nao ma Billion anthuwo.Inu osamva chisoni kuti kampani yomwe timayidalira kuti ilemba ma Engineer athu akachoka pa Poly iri gwede gwede chifukwa cha anthu osakonda ziko ngati Inu.
Absolute rot….. disgusting!
This article is extremely biased. The article is telling us that the investigation is about to be instituted and now one wonders how the DPP officials have been identified before the investigation?
Malawians are still fresh in their memories of the illegal water connection at Lilongwe Water Board by one of the most aged political party in the country. This oldest party could be suspected to have illegally connected power to their premises. A credible suspicion of such illegal connection could be more reasonable that the rule of thumb suggested in the article.
You can write well, but you have got snail brain. The article is reporting what Mpinganjira said and some of the money was lost through procurement of thing
Yap. Thom is reporting what he has unearthed about dubious procurement of materials at ESCOM. But the precedent was set by the yellow regime, and ruling parties after it have just perfected it coupled with dubious donations to ruling parties. That has provided an avenue for public officers to abuse ESCOM funds. Its time ESCOM management and politicians reflect deeply if it is worthwhile to continue operating this corporation without infusing it with Europeans or Japanese who follow work ethics to the letter. Phew! Malawi is stinking with corruption!
Good start Thom! Please see this through, we need more people like you.