Electricity Supply Corporation of Malawi (Escom) is embroiled in a fresh procurement controversy after preferring Clavic General Suppliers’ K8.1 billion bid despite the firm not being the lowest evaluated bidder.
The Public Procurement and Disposal of Assets Authority (PPDAA) has since rejected Clavic as Escom’s preferred bidder to supply transformers and metering units.
The authority said in awarding the contract, Escom violated its own evaluation criteria as defined in the parastatal’s bidding document issued for the same, which stipulated that the contract would be given to the lowest evaluated bidder.
In a letter to Escom dated March 30 2026 that The Nation has seen, PPDA acting director general Timothy Kalembo advised the parastatal to re-evaluate the procurement process in accordance with Section 62(2) of the PPDA Act 2025.
However, PPDA proceeded to issue a ‘No-Objection’ to Creck Hardware and General Suppliers for the supply and delivery of 33 kiloVolts (kV) distribution transformers worth K12.24 billion.
The Nation sources within Escom and PPDA confided on Tuesday this week that Escom is already in trouble for intending to offer multiple contracts to three companies, namely Safari General Dealers, WL Trading and Uni General Dealers for the supply and delivery of wooden poles worth a combined K40 billion.
Information The Nation sourced shows that Escom wants each of the companies to secure two contracts as follows: Safari slightly over K14 billion and another at about K584 million; WL Trading just over K15.6 billion and another for about K690 million and Uni an K8.2 billion contract plus another worth K332 million.
PPDA spokesperson Mandy Pondani is yet to respond to The Nation questionnaire sent on June 3 2026 despite several promises that the responses were being worked on.
On the other hand, Escom chief public relations and communications officer Pilirani Phiri on Monday said that while the power utility appreciated the opportunity to respond to the issues prior to publication it would be premature to comment on the matters at this point.
He said: “We wish to advise, however, that the procurement processes referenced in your questions are at an active and confidential stage—specifically because a Notice of Award has not yet been issued on the transactions concerned.
“In accordance with established procurement governance protocols and in the interest of preserving the integrity of the ongoing process, Escom is not in a position to make further comment on the specifics of these matters at this time.”
Meanwhile, good governance observers said on Tuesday that recurring procurement transgressions at the power firm point to a corporate governance culture compromised by systemic impunity and political interference.
Centre for Social Transparency and Accountability executive director Willy Kambwandira said when regulatory bodies are forced to intervene as is the case with PPDA on Escom, it raises serious questions about whether procurement decisions are being driven by value for money and public interest or by other considerations.
“The recurrence of these issues despite previous scandals and suspensions suggests that the problem is not isolated to individuals, but may be systemic, involving weaknesses in oversight, accountability and corporate governance,” he said.
In a separate interview, Centre for Human Rights and Rehabilitation executive director Michael Kaiyatsa said it was more troubling that such matters are occurring when Malawians continue to endure persistent power blackouts.
Private practice lawyer Benedicto Kondowe said equally important is personal accountability, adding, where investigations establish wrongdoing, appropriate administrative, civil or criminal action should follow.
In recent years, Escom is no stranger to procurement-related queries as in May this year its director of finance Brian Ndisale was suspended over alleged flouting of procedures in the procurement of K8 billion worth of motor vehicle tyres from Mapeto Tyres last September.
Further, in 2022, the Parliamentary Committee on Natural Resources and Climate Change called for prosecution of people behind a K14 billion misprocurement, which created a backlog of 52 000 applications dating back to 2018.
In 2020, Escom was also embroiled in yet another misprocurement scandal which cost taxpayers $1 373 712.50 after it erroneously procured high rupturing capacity (HRC) fuses of various specifications, circuit breakers of different specifications as well as surge arrestors, which came into the country in four shipments.
The power utility was also earlier embroiled in a K26 million procurement of envelopes whose market value was K3 million at the time. The envelopes were said to be enough to last 22 years.
