Parliament summons Escom over K1.9 billion fraud

Malawi Parliament has angrily reacted to the  3.8 million litres of diesel worth K1.9 billion for Electricity Supply Corporation of Malawi (Escom) for running power generators and has since asked the power utility management and board to appear before the Energy and Natural Resources Committee by September.

The generators are being managed by Aggreko International Projects—an independent power producer (IPP)—to help mitigate the power generation crisis in the country in the wake of challenges faced by Electricity Generation Company (Egenco).

The fuel was reportedly  lost  to a syndicate involving transporters, security guards and its staff.

Chairman of the parliamentary committee Victor Musowa said in addition to Escom management and board, the legislators have also summoned ministry of Energy and Natural Resources officials and power regulator Malawi Energy Regulatory Authority (Mera).

“As a committee, we are equally concerned, we are equally disappointed with the turn events at Escom,” said Musowa, a ruling Democratic Progressive Party  (DPP) legislator.

Musowa said the theft of the 1.8 million litres of fuel comes at a time when the committee is yet to conclude its investigations on the questionable hiring of the power generators.

“We want to find out how much Escom is paying for the generators; if the procurement procedures were duly followed before the acquisition of the generators,” he said.

He said the committee has already communicated with Escom, the ministry and Mera over the issue, saying they are expected to meet in September if not earlier, saying the committee is treating the theft of the fuel as a matter of urgency.

Musowa said the committee has the mandate to investigate the rot at Escom, saying it has the overseer mandate of the government resources.

Escom public relations manager Innocent Chitosi confirmed the diesel racked after revelations by Vice-President Saulos Klaus Chilima (SKC), who during the launch of United Transformation Movement (UTM) Southern Region rally at Njamba Freedom Park in Blantyre.

The Vice-President cited the diesel racket in his emphasis of entrenched corruption and fraud in government ministries, departments and agencies (MDAs) under the DPP administration.