Ombudsman to take on SPC over PML

Ombudsman Grace Malera has disclosed that she intends to engage Secretary to President and Cabinet (SPC) Colleen Zamba for failing to adhere to a December 13 2022 deadline to furnish her office with a fresh comprehensive response and supporting documents on controversies surrounding Power Market Limited (PML).

Malera instituted an inquiry into alleged breach of laws and irregularities on the establishment of PML and recruitment of its top management.

A communication Weekend Nation has seen shows that the Office of Ombudsman, on November 23 2022, issued a notice of investigation to both the SPC and PML chief executive officer Rosemary Mkandawire following a consent order under judicial review Cause No 35 of 2022, in which it was agreed that the Office of Ombudsman should restart the investigation.

In the letter, the Ombudsman requested information on whether the position of CEO, directors and managers were advertised, the academic and professional credentials of the officers holding or who were holding the positions; the short-listing process that took place, the interview process and offer for the positions.

In July this year, the High Court in Lilongwe granted Mkandawire order of stay, consequently stopping the Office of Ombudsman from carrying out a public inquiry into the allegations.

In a telephone interview yesterday, Malera indicated that only Mkandawire responded by arguing that PML cannot not be probed by the Office of Ombudsman as the matter is still before the court.

But the Ombudsman said the response is misguided.

She further added that Zamba is yet to respond to the notice; hence the move to engage her as board chairperson of PML and a respondent.

Said Malera: “After settling the matter by a consent order issued by the courts permitting Office of the Ombudsman to recommence investigations into the PML matter …. PML has responded advising Office of Ombudsman that the Ombudsman cannot investigate the matter as it is before the court. This response is misguided and the Office of Ombudsman is taking up this issue with SPC.”

Both Zamba and Mkandawire were not readily available for comment as their phones could not be reached.

In its complaint to the Ombudsman, dated June 11 2021, Escom Staff Union (ESU) alleged that PML recruitment process of its top management positions, were irregular and unprocedural.

Reads the letter signed by ESU secretary general Williams Mnyamula: “No interviews were conducted for these positions, but rather the positions were given due to political affiliation.”

ESU, among others, wants the Ombudsman to reverse all the decisions that were irregularly made, both on the establishment of PML and recruitment of its top management.

The union also argues in the letter that the most rational and sensible thing to do is to maintain single buyer function, transmission, systems market operator and distribution as divisions within unified Escom, adding that Malawi’s current and medium-term power sector outlook doesn’t warrant the operationalisation of PML.

But PML also sought legal redress on the ongoing wrangles with ESU on ownership of Single Buyer Licence.

Court documents show that PML on October 27 2022 applied to the Industrial Relations Court, Lilongwe District Registry, to declare that ESU has no mandate to challenge the recruitment process at PML and that all employees were duly employed.

The row between the two parties emanates from Escom’s failure to cede the role of single buyer which, according to the law, is supposed to be performed by PML.

Asked on government’s position on the matter, Minister of Information and Digitisation Gospel Kazako on Thursday said government will soon announce on the wayforward.

He, however, refused to be drawn to comment further.

As part of power sector reforms, PML was created out of Escom as a licensed firm to buy and sell power. The arrangement has left Escom with electricity distribution, transmission and systems market operator functions.

PML was granted the licence in December 2020 by the Malawi Energy Regulatory Authority (Mera) under Section 3 of Electricity Act, to buy all electricity from independent power producers (IPPs), including importing and selling electricity in Malawi.

Mera officials, however, told the Parliamentary Committee on Natural Resources earlier this year that they recognise PML as the institution handling the single-buyer system and called on Escom to handle what is within its mandate.

Last year, during a meeting with the Parliamentary Committee on Natural Resources, Ministry of Justice, Escom, PML, Mera and other stakeholders, the Office of the Attorney General advised that the single-buyer system should be transferred from Escom to PML by December 31 2021.

But there is little progress in having PML manage the single-buyer system as Escom still manages the bulk of transactions and stabilisation account that PML is supposed to handle.

Failure to finalise transfer of the function of single-buyer system to PML forced the parliamentary committee to engage Escom and PML to appreciate efforts that had been made to resolve outstanding issues.

A meeting between Minister of Energy and ESU held on March 15 2021 resolved that an independent review on viability of PML will first have to be conducted and that all handover activities should be put on hold to ensure that the two sides collaborate to facilitate a seamless transition.