Exposed: Questions Over Rejection of Creck Hardware Despite Clearances

PPDA cleared both bids | ESCOM says no contracts awarded

A procurement dispute involving the Electricity Supply Corporation of Malawi (ESCOM) and Creck Hardware and General is under scrutiny after conflicting decisions from the Public Procurement and Disposal of Public Assets Authority (PPDA) and an alleged directive from the Presidency.

At the centre of the controversy are contracts worth K12.24 billion and K8.1 billion linked to the supply of transformers and metering units.

The PPDA initially halted ESCOM’s proposed K8.1 billion contract, citing non-compliance with evaluation criteria. The authority directed ESCOM to re-evaluate the bid in line with Section 62(2) of the Public Procurement and Disposal of Public Assets Act, 2025.

In a separate transaction, ESCOM sought PPDA “no objection” approval for a K12.24 billion contract to supply 33KV distribution transformers to the same supplier. PPDA granted clearance.

However, the matter was later escalated to the Office of the President and Cabinet. Documents indicate that the Chief Secretary wrote to President Arthur Peter Mutharika seeking approval for the K12.24 billion contract.

In a handwritten response, the President reportedly questioned whether authorities were aware of the ownership of the companies involved and directed that the deal should not proceed with Creck Hardware.

The development has raised debate among governance observers, who argue that local companies that meet procurement requirements should be given fair access to major government contracts.

ESCOM’s Public Relations Office has clarified that no contracts have been awarded in either case. The utility says it was still seeking clearance and had not concluded any procurement awards.

Critics are questioning why a procurement process that had already received PPDA clearance was escalated to the Presidency, and whether the K8.1 billion halt was purely PPDA-driven or influenced by presidential intervention.

Under the 2025 Public Procurement Act, procuring entities are responsible for awards while PPDA provides oversight and “no objection” approvals. The law does not explicitly provide for presidential clearance on individual procurement awards unless another legal framework applies, raising questions over whether the intervention was procedural or an administrative overreach.

The controversy comes amid separate reports that ESCOM is also facing scrutiny over plans to award contracts worth about K40 billion for the supply of wooden poles to Safari General Dealers, WL Trading, and Uni General Dealers. The three companies are reportedly expected to share six contracts collectively valued at around K40 billion.

The growing number of procurement disputes has intensified scrutiny of ESCOM’s procurement systems, with governance advocates questioning compliance with procurement law and value-for-money principles.

Responding to inquiries, ESCOM Chief Public Relations and Communications Officer Pilirani Phiri said it would be premature to comment as the transactions remain active and confidential. He stressed that procurement processes were still ongoing and no notices of award had been issued.

ESCOM has in recent years faced several procurement-related controversies, including investigations into major contracts and allegations of procedural irregularities.

Economic expert Dr Ben Dzolowere cautioned against allowing the process to be influenced by bias, warning against “sabotaging the process based on colour, race, religion, tribe or regional connections.” He said Creck Hardware has the experience to deliver on such contracts.

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