ACB Probes Gen-sets Deal

The Anti-Corruption Bureau’s (ACB) instituted investigations have identified procurement flaws in the two-year $73.9 million generators leasing agreement between Aggreko Power Solutions and the Electricity Supply Corporation of Malawi (Escom).

ACB director of investigation, Daniels Mponda told Legal Affairs Committee of Parliament that preliminary findings show that there are a number of procurement flaws that occurred and they need to be investigated further.

“We have done a considerable amount of investigation on the $73.9 million two-year leasing agreement on gen-sets,” he told the committee.

In March this year, the ACB opened an investigation into the procurement of the multi-billion kwacha contract on the generators which happened in 2017.

The probe followed action by the Office of the Director of Public Procurement (ODPP) which stopped Escom from awarding a contract to supply 78 megawatts (MW) diesel-powered generators to Aggreko because of procurement irregularities.

But in January this year, President Peter Mutharika commissioned 55MW diesel-powered generators in Blantyre that Escom—using a single sourcing procurement method—hired from Aggreko, the same company whose contract the ODPP had earlier barred.

In its findings, the ODPP faulted the evaluation process, saying it was not property concluded and ordered the cancellation of the awarding of the contract to Aggreko and asked Escom to restart the procurement process.

Malawi opted for diesel-powered generators as an interim measure to improve power supply in the wake of reduced hydro-electric power generation following low water levels in Lake Malawi and its sole outlet, the Shire River, where over 90 percent of the country’s electricity is produced.

Currently, Nkula A is undergoing rehabilitation and modernization under the Millennium Challenge Corporation (MCC) energy compact. The project will see Nkula A’s capacity increased from 24MW to 36MW and an upgrade of the power transmission infrastructure.