ACB stops Escom from proceeding with 300MW power purchase deal

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Escom Malawi

The Anti-Corruption Bureau (ACB) has stopped Electricity Supply Corporation of Malawi (Escom) from proceeding with a 300MW Power Purchase deal due to corruption allegations.

This is according to a letter dated 21 August 2023 signed by ACB director general Martha Chizuma and addressed to Escom Chief Executive Officer Kamkwamba Kumwenda.

Chizuma bars Kumwenda from proceeding with any transaction, agreement or any other arrangement in relation to a 300MW Power Purchase Agreement-PPA with Westland Construction and ACSG Consortium.

The Restriction Notice, according to ACB, is for the bureau to conduct investigations into an allegation of corrupt practices that it has received regarding the PPA.

It further says that this is in pursuant of its powers under Section 23 (1) of the Corrupt Practices Act.

A published report by the the Investigator Magazine indicates that the company, Westland Construction and ACSG Consortium, is allegedly owned by a Nigerian businessman only identified as “Chief” who is linked to top officials in the Lazarus Chakwera administration.

Last year, former National Oil Company of Malawi acting chief executive officer Helen Buluma told a parliamentary inquiry that Secretary to the President and Cabinet Colleen Zamba was pressurizing her to offer a fuel supply contract to a Nigerian man identified as Chief.

Zamba did not appear before the inquiry to respond to the allegations.

According to the Investigator Magazine report, several government officials travelled to the United States in July where they signed an illegal provisional deal relating to the power purchase agreement with Chief.

Speaking to the magazine, an expert alleged that the deal is a scam to defraud Malawians.

“You need 1200 hectares for a 300MW solar power plant. You will need over 4,000 hectares for such a project to reach 1000MW. Chief’s home Nigeria has the lowest intake of solar energy and has power shortages, he opts to invest in Malawi when he can make a killing in Nigeria. It does not need a primary school chap to see that this is another scam,” said the solar expert.

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