EU warns BWB on misprocurement
It never rains but pours for Blantyre Water Board (BWB). At a time the utility parastatal is struggling to provide water to residents of the commercial capital, some of its major financiers have threatened to withdraw support on the back of misprocurement reports.
In a letter dated December 15 2014 addressed to Blantyre Water Board (BWB) acting chief executive Henry Bakuwa, the European Investment Banking (EIB) and the European Union (EU) Delegation have demanded from the board an official position regarding the allegations that were exposed by The Nation last month.
“The EIB and the EU Delegation in Malawi are very concerned about these allegations and whilst we are currently verifying our internal procurement portfolio to screen the documents in our possession against the mentioned names and contracts, we would appreciate having Blantyre Water Board’s official position on these allegations,” reads in part the letter co-signed by head of Public Sector Unit External Mandates Division Transaction Management and Restructuring Directorate Michel Marciano and monitoring analyst External Mandates Division Transaction Management and Restructuring Directorate, Oliva Stourm.
In the letter, BWB has also been asked to provide EIB and EU with copies of the Office of the Director of Public Procurement (ODPP) report that outlined procurement flaws as reported by The Nation.
Further reads the letter: “We would like to remind BWB that according to the finance contract and the grant agreement, both signed on December 19 2008, you are under the contractual obligation to report on such cases without delay. Failing to do so constitutes a serious breach of contract and can result in a default event.
“We are using this opportunity to inform you that an EIB delegation will visit Malawi at the end of January 2015, during which we would like to discuss any implications with yourselves and the respective government bodies.”
In an interview yesterday, Bakuwa said he was yet to receive the letter from EIB and the EU.
However, he said he would provide the EIB with relevant information as per the allegations.
According to Bakuwa, the project, which started in 2009, is nearing completion and it is worth about K66 billion (€14 million).
Said Bakuwa: “I hope it will not come to a complete suspension of the whole project because so much money has been invested, materials such as motor pumps were already bought and are being installed.
“The project goes as far as even investing in a future Malawi and so most parts would be affected, which is, of course, what we do not want. We hope it will not come to that.”
Last month, The Nation exposed the extent of the dubious procurement deals that have rocked the parastatal and how executive management bypassed the company’s internal procurement committee (IPC) and the ODPP to literally handpick suppliers and contractors to carry out works or supply goods.
