Government allays job loss fears at Escom
Malawi Government has allayed fears that the restructuring process of the power sector that will, among others, see the sole power utility Electricity Corporation of Malawi (Escom) being split into two or more parastatals will lead to job losses.
Currently, government is implementing a Power Market Restructuring (PMR) which seeks to unbundle or split Escom into two parastatals—one for generation of power and the other for transmission and distribution of power.
Besides breaking Escom power market monopoly, government also intends to amend the Electricity Act of 2004 as well as redesigning the energy sector regulatory process and methodologies, among others.
However, the process has sent stirred panic among Escom employees with rumours rife within the parastatal that the process would result to job cuts.
But dismissing the fears, principal secretary (PS) in the Ministry of Natural Resources, Energy and Mining Ben Botolo said government does not have any intention to downsize staff at Escom in the wake of the restructuring process.
He said: “There will be no job losses. Those people who are working at Nkula, Kapichira and Tedzani [hydro power stations] will still be working there as [say] engineers or those in transmission department or distribution department, they will be there as they are.”
Botolo said this Friday during a Media Sensitisation Workshop on PMR held at Sunbird Livingstonia Beach in Salima organised by Millennium Challenge Account Malawi (MCA-M).
He said the restructuring process is only aimed at bringing efficiency at the parastatal which has over the years come under fire for frequent power outages.
Commenting on the Power Sector Reform Project (PSRP) whose main objective is to improve financial and operational performance of Escom, Botolo said the project consists of three main activities, including Escom turnaround activity.
Botolo said currently, government has hired Ernst & Young to develop a detailed financial plan and to review Escom’s quarterly management accounts.
Commenting on Escom operations, the PS said government has engaged a German firm Fichtner to review the organisation of Escom and has also hired another company to help set up Escom procurement division.
On his part, MCA-M deputy chief executive officer LameckMithi said the Escom turnaround activity aims to restore the parastatal’s financial health and rebuild the organisation into a financially sustainable, well-managed utility company.
“We are moving very well and we are on time,” said Mithi when asked to rate the overall implementation of the MCA project whose implementation started on September 20 2013 and has its closure date set on September 19 2018.
The PSRP is part of the $350.7 million Millennium Challenge Corporation (MCC) compact component.
MCC is an independent United States of America foreign assistance agency that seeks to reduce poverty in developing countries through supporting economic growth. MCC works with countries that are deemed “eligible” after meeting certain benchmark measures for good governance, economic freedom, and investing in people, and it provides assistance through formal bilateral agreements negotiated and developed in a country-led process.
