Egenco audit shows 2 got K4bn contracts
Two firms have emerged as big earners in the K6.7 billion Electricity Generation Company (Egenco) of Malawi procurement contracts query as exposed by a February 2024 forensic audit and investigation report.
According to the audit, Teligenta Limited, reportedly based in Mauritius and Lloyd Electrical, locally owned by Hussein Osman Nurmahomed, received about K4 billion from the K6.7 billion Egenco paid out in irregular contracts.
The forensic audit uncovered alleged misprocurement linked to unissued items in stock, unauthorised requisitions and rampant single sourcing of materials and services instead of buying them through national competitive bidding (NCB), among others.
Titled ‘Forensic audit and investigation of alleged irregularities report’, the audit covering the period January 2017 and March 2022 was carried out by Mwenelupembe, Mhango & Company on behalf of the Auditor General.
The Egenco audit report reveals that out of the K6 751 830 584.75 Egenco paid out mostly without following procurement procedures, about K4 billion went to Teligenta and Lloyd Electricals.
The auditors observed that Teligenta had only one director.
According to the report, when auditors called Teligenta in Mauritius to verify certain issues, the receiver on the other end cut the line immediately they introduced themselves.
The contracted firms also included two other local companies owned by businessperson Abdul Karim Batatawala, namely L & G Tools Engineering and Novatech Engineering. L & G Tools Engineering got a contract of about K3.5 million in March 2018 while Novatech Engineering was awarded a contract worth K56 million.
The audit followed allegations of abuses at Egenco and former Secretary to the Treasury (ST) McDonald Mafuta Mwale last October sent former Egenco chief executive officer William Liabunya and director of corporate services Videlia Mluwira on leave to pave the way for the probe.
But Liabunya told The Nation last Friday he was surprised that the auditors left him out, arguing “he was not contacted and was not aware of the report”.
Egenco board chairperson, who is also Secretary to the President and Cabinet Colleen Zamba has said the revelations in the report may require disciplinary or courts action.
Meanwhile, various civil society organisations and social commentators have urged government to take immediate legal action against those implicated in financial abuse.
Egenco was established in 2017 to generate electricity, following the unbundling of the Electricity Supply Corporation of Malawi (Escom) Limited into two separate institutions as part of power sector reforms.
