ACB stops Escom’s 300MW power deal

The Anti-Corruption Bureau (ACB) has stopped Electricity Supply Corporation of Malawi (Escom) from proceeding with the 300 megawatts (MW) Power Purchase Agreement (PPA) with Westland Construction and ACSG Consortium pending investigations into alleged irregularities.

In a restriction notice dated August 21 2023 signed by ACB director general Martha Chizuma and addressed to Escom chief executive officer Kamkwamba Kumwenda, the graft-busting agency said the decision follows a complaint received on the matter.

The bureau said it suspects that there was an offence in the deal under the Corruption Practice Act.

Reads the notice: “Take notice that you shall not without my written consent, deal with or proceed with any transaction, agreement or other arrangement in relation to a 300 MW Power Purchase Agreement [PPA] with Westland Construction and ACSG Consortium.”

In an interview yesterday, ACB principal public relations officer Egrita Ndala said the complaint alleges irregularities in the process of identifying the supplier for the PPA.

She also said the complaint alleges the unsuitability of Westland Construction and Africa Consolidated services Group (ACSG) consortium for the deal in question

Said Ndala: “It [the order] is restricting Escom from continuing with the process of engaging Westland Construction and ACSG Consortium.

“The restriction notice is valid for 90 days. The Bureau will endeavor to work hard to ensure that the investigation is concluded within this period. The investigation is already underway.”

However, she could not disclose the detailed information of the companies. But The Nation established that Westland Construction is domiciled in the United States while ACSG’s physical address is 8 Lake Chad Crescent, Maitama in Abuja, Nigeria.

When contacted, Escom public relations officer Peter Kanjere asked for more time.

According to sources, the bureau received several complaints relating to PPA and that it was not engaged in the multimillion dollar contract. The consortium was expected to install about 1000MW solar terminal power generation facility in the country.

But documents we have seen show that under the pilot phase of PPA, the consortium was supposed to install 300MW solar terminal power generation facility.

Reacting to the development, Centre for Social Accountability and Transparency executive director Willy Kambwandira welcomed ACB’s decision, saying the PPA smacks of corrupt dealings.

He expressed concern that there seem to be no accountability on such cases arguing that ACB does not update Malawians on the outcomes of the investigations.