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Anti-Corruption Bureau stops K56 million Escom payment

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The Anti-Corruption Bureau (ACB) has stopped Electricity Supply Corporation of Malawi (Escom) from paying Plastic Extrusion Industries Limited directly or through their lawyers Ritz Attorneys at Law a sum of K56,460,643.55.

A notice from ACB Director-General Reyneck Matemba to Escom’s Chief Executive Officer Allexon Chiwaya says the bureau received a complaint regarding the impending payment.

“Whereas the Anti- Corruption Bureau has instituted an investigation in the respect of an offence under the Corrupt Practices Act; take notice that you, or any member of staff of Escom Limited shall not without my written consent, prepare, process, or issue payment in favour of Ritz Attorneys at Law or Plastic Extrusion and Moulding Industries Limited or any other person or entity in the sum of K56,460, 634. 55 or any other sum of money using Escom Creditors Current Account No. 004438 held at FDH Bank Limited or through any Escom Limited Bank Account held with any commercial bank in Malawi,” reads the notice.

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Matemba confirmed restricting the payment saying the bureau is investigation the impending payment and another amount of K26 million which Escom allegedly already paid the company even though it was not supposed to.

“We received a complaint regarding this impending payment and another payment which was already made to the tune of K26 million,” he said.

He could not provide more details of the deal that had resulted in Escom making the payments.

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In April this year, ACB also stopped the Malawi Revenue Authority from completing a recruitment exercise of additional members of staff having received a complaint on the process.

Briefing the media on Wednesday, Matemba said their investigations into the claims show that 71 of 125 people who were recruited did not follow due processes.

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