PML, Escom row rages on

Power Market Limited (PML) has sought legal redress on the ongoing wrangles with Escom Staff Union (ESU) over ownership of the Single Buyer Licence.

Court documents we have seen show that on October 27 2022 PML 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 at the entity were duly employed.

The row between the two parties emanates from the failure by Electricity Supply Corporation of Malawi (Escom) to cede the role of single buyer which, according to the law, is supposed to be performed by PML.

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

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

PML has, therefore, asked the court to stop ESU from interfering with its operations such as asking the Ministry of Energy and the Office of the Ombudsman to investigate its establishment and how its members of staff were recruited.

PML is a creation of the power sector reform project under the $350.7 million five-year Millennium Challenge Corporation (MCC) energy compact that aimed at improving power generation, transmission and distribution infrastructure.

PML Wapona lawyer Kita refused to comment on the court’s direction on the matter.

But ESU secretary general William Mnyamula said in an interview on the same day that the union will this week be consulting their lawyer on the way forward following the summons.

He stressed, however, that the union still stands on its submission to the office of the Ombudsman regarding alleged unlawful establishment of PML and the irregular recruitment of its top management.

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

Judge Yakuwawa Msiska directed that the inquiry be postponed until a judicial review application is heard.

A letter dated June 24 2022, titled ‘Public Inquiry into Allegations of Irregular Recruitment at PML’, signed by Ombudsman Grace Malera, states that the complainants had alleged that the entire executive management at PML was recruited without undergoing interviews, but was appointed based on political affiliation to the former ruling Democratic Progressive Party.