Malawi govt split Escom again, forms Power Market Limited
Government which split the Electricity Supply Corporation of Malawi (Escom) into two which led into the creation of Electricity Generation Company (Egenco) solely responsible for power generation, has also established yet another company – the Power Market Limited (PML).
The new firm will now be sourcing power from generators such as Egenco and other independent power producers (IPPs) and sell to Escom for it to transmit and distribute.
This has been done as the Escom parastatal is now heavily debt-ridden than ever before and it has failed to connect customers to the national grid and to manage blackouts.
In 2018 Escom asked for a bailout of K53 billion from Treasury, but was turned down. Thereafter, the parastatal borrowed K30 billion from banks to settle some of its debts, including the K17 billion it owed Egenco. Thereafter, Escom remained with a debt of K24 billion.
A confidential report titled Report on Building and Unleashing Escom’s Potential in the New Environment, dated February 7 2019, the task team, chaired by Comptroller of Statutory Corporations Stuart Ligomeka, detailed failure of the procurement, stores, distribution and financial management functions as well as indiscipline and poor organisational culture at Escom.
Besides Ligomeka , other members of the team included messrs Hilario Chimota, Patrick Matanda, Collins Magalasi, Professor Grant Kululanga, Chizaso Nyirongo, MacDonald Mwale and Headwick Banda, who was secretary, reported that Escom has significant weaknesses in governance and operations, leading to high levels of fraud and theft of public resources.
Since 2016, Escom wrongly procured goods valued at K8.3 billion, bought phased out wall-mounted three-phase prepaid meters worth K1.8 billion and items worth K122 million without local purchase order (LPOs) and Internal Procurement Committee (IPC) approval.
The parastatal’s board chairperson Thomson Mpinganjira, a highly regarded finance professional who founded and has been running multi-billion kwacha financial services group FDH Financial Holdings, raised the alarm about the Escom mess soon after his appointment in July 2018.
He lamented about bad procurement decisions which made the firm procure K18 billion worth if equipment that would not be needed for years.
Nonetheless, commentators argue that on eof the main problems that has been suffocating Escom is political interference.
Now new firm PML and IPPs ave the task of generating electricity in the country and will all be selling their power to Escom to feed the national grid.
But for purposes of regulations by Malawi Energy Regulatory Authority (Mera) Escom will be the major supplier of power in the country for both domestic and industrial use.
Escom Limited is a public utility incorporated as a private company under the Companies Act (Cap 46:03) of the Laws of Malawi in 1998.Follow and Subscribe Nyasa TV :
zipatala zina kaya ma clinic apa tingoti ma protective equipment ndi zokwanila.
same the picture above ose avala zanyuwani ndipo sizinavite kigula. koma wapa ground akugwila nchito yokumba alibe protective wear.
Whatever you do, ESCOM, or let’s say Power Utility, has been damaged beyond repair having been brutally raped by DPP/APM administration. Considered a Cash Cow, every DPP bigwig or sympathiser, has taken the utility company as a source of quick riches through procurement of unwanted equipment/materials, often forced on a compromised management.
And the so-called policy makers have brought in an intelligent, but failed aspiring MP, R Mkandawire to try and sort out things, albeit through a bogus company. I can only wish her good luck.
And the new company board chair will be a DPP cadet,
and then the circle of corruption will settle at zero to begin yet another hierarchical ofichakuti oracle (yahoo)
Peter Wakalamba Akufunika Memory Update,…Timuflasha Pa 2 July Pa Nabola Moyo,!,..Jane, Alomwe Ochuluka, Mulli Ndi Inuso Mwina Zikukusangalasan,,.
We are very sorry for our beloved Malawi. Such things ought not to be happening. It seems corruption is at its peak. I don’t see any goodness of putting that entity just to do marketing.
Agreed entirely. With only 10-12%of population with access to electricity, ESCOM is too small to be disected as is being done.
Even the Egenco/ESCOM split was not justifiable anyway. What government is doing is simply running away from explaining why the power utility has been forced on its knees during DPP/APM administration.
Someone will be required to explain when the time comes. I pity those with no country to run to.
Every parastatal will be “ heavily debt-ridden” as long as successive ruling parties use them as their piggy banks. It doesn’t take a rocket scientist to figure that one out.
Mavuto umbelekana pa a Malawi, Dziko lofunika kulipanga update ili ashi.
Very sad I dont think that this will solve the problem because we all know where the problem is. Just stop stealing money from Escom period.
What ? Another CEO, DOFA, ACCOUNTANT, AND WHOLE LOT MORE. Reason is incompetent to be improved by a whole new campany. Malawiiiii?
Koma this incompetent DPP government eishhhh 😡😡😡 can u just pack up n go, u have failed n don’t have anything to offer, the only talent u have is kuba basi