By Linda Kwanjana
The Electricity Supply Corporation of Malawi deals with Creck Hardware and General K12.24 billion is under scrutiny after conflicting rulings from the Public Procurement Authority and a handwritten directive from the Presidency.
The Public Procurement and Disposal of Public Assets Authority halted ESCOM’s proposed K8.1 billion contract for transformers and metering units, citing non-compliance with evaluation criteria. PPDA directed ESCOM to re-evaluate the bid under Section 62(2) of the Public Procurement and Disposal of Public Assets Act, 2025.
In a separate case, ESCOM sought PPDA “no objection” for a K12.24 billion contract to supply 33KV distribution transformers to the same supplier.
PPDA granted clearance. The matter was then escalated to the Office of the President and Cabinet. Documents seen by this publication show the Chief Secretary wrote to President Arthur Peter Mutharika seeking approval for the K12.24bn contract.
In a handwritten response, the President questioned whether authorities knew the ownership of the companies involved, and directed that the deal should not proceed with Creck Hardware.
The developments have raised concerns among observers who argue that local companies meeting procurement requirements should get a fair shot at major government contracts.
ESCOM’s Public Relations Office says no contract was awarded in either case. The utility maintains it was still seeking clearance and had not concluded any awards.
Critics are asking why a procurement that already had PPDA clearance was escalated to the Presidency, and whether the K8.1bn halt was purely PPDA-driven or influenced by presidential intervention.
Under the 2025 Public Procurement Act, procuring entities handle awards while PPDA provides oversight and “no objection” approvals. The law does not provide for presidential clearance on individual awards unless another legal framework requires it. The debate now centers on whether presidential involvement was procedural or an administrative overreach.
The latest revelations have also emerged against the backdrop of reports that ESCOM is facing questions over plans to award multiple contracts worth about K40 billion for the supply of wooden poles to Safari General Dealers, WL Trading and Uni General Dealers.
According to information circulating within procurement circles, the three companies are expected to share six contracts collectively valued at around K40 billion.
The succession of procurement controversies has intensified scrutiny of ESCOM’s procurement systems, with governance advocates questioning whether the utility is consistently adhering to procurement laws and principles of value for money.
Responding to queries on the various procurement processes, ESCOM Chief Public Relations and Communications Officer Pilirani Phiri said it would be premature for the utility to comment as the transactions remain active and confidential.
He said the procurement processes were still underway and that no notices of award had been issued.
ESCOM has in recent years faced several procurement-related controversies, including investigations into major contracts and allegations of procedural irregularities.
Economic expert Dr Ben Dzolowere warned against “sabotaging the process based on colour, race, religion, tribe or regional connections.” He said Creck Hardware has the experience to handle such contracts.
