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).

 ESCOM entourage inspecting the Aggreko diesel power generators

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.

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nafundo zalo
nafundo zalo
10 months ago

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.
ndatha

Mtete
Mtete
10 months ago

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.

Guantanamo
Guantanamo
10 months ago

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)

2 020
2 020
10 months ago

Peter Wakalamba Akufunika Memory Update,…Timuflasha Pa 2 July Pa Nabola Moyo,!,..Jane, Alomwe Ochuluka, Mulli Ndi Inuso Mwina Zikukusangalasan,,.

Mark zilimoyo
Mark zilimoyo
10 months ago

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.

Mtete
Mtete
10 months ago
Reply to  Mark zilimoyo

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.

Ngombwax
Ngombwax
10 months ago

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.

The Dangerous Protocol.
The Dangerous Protocol.
10 months ago

Mavuto umbelekana pa a Malawi, Dziko lofunika kulipanga update ili ashi.

Keen Observer
Keen Observer
10 months ago

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.

Mulopwana
10 months ago

What ? Another CEO, DOFA, ACCOUNTANT, AND WHOLE LOT MORE. Reason is incompetent to be improved by a whole new campany. Malawiiiii?

Na bi soo
Na bi soo
10 months ago

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

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