The office of Ombudsman has launched an investigations into allegations of irregular recruitment of top management at Power Market Limited (PML).

According to a letter we have seen, dated June 24 2022, Ombudsman Grace Malera has summoned representatives of Escom Staff Union (ESU) and Comptroller of Statutory Corporation to a public inquiry scheduled for July 26 2022 in Blantyre.

Malera confirmed, in a telephone interview this week, that the inquiry will run from July 25-27.

The letter, titled ‘Public Inquiry into Allegations of Irregular Recruitment at PML’, signed by 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 (DPP).

Reads the letter in part: “Please be advised that I am looking for the recruitment process followed all applicable regulatory framework within your organisations. You are, therefore, expected to respond on this allegation…non-compliance with this notice will result in initiation of contempt proceedings at the High Court against yourself under Section 124(d) of the Constitution.” 

ESU secretary general William Mnyamula confirmed receiving the letter and indicated that the union will attend the inquiry.

In its complaint to the Ombudsman, dated June 11 2021, ESU alleged that the PML recruitment process of all its top management positions,  including that of chief executive officer (CEO) and directors, was irregular and unprocedural.

Reads the letter signed by Mnyamula: “No any interviews were conducted for these positions, but rather the positions were given due to political affiliation.”

ESU, among others, wants the Ombudsman to reverse all the decisions that were irregularly made, both on the establishment of Power Market Limited and recruitment of its top management positions.

The union also argues in the letter that the most rational and sensible thing to do in the meantime is to maintain single buyer function, transmission, systems market operator and distribution as divisions within unified Escom, adding that Malawi’s current and medium term power sector outlook doesn’t warrant the operationalisation of PML.

The row between the two parties emanates from Escom’s failure to cede the role of power of single buyer which, according to the law, is supposed to be performed by PML.

Malawi Energy Regulatory Authority (Mera) officials, however, told Parliament earlier this year that they currently recognise PML as the institution handling the single-buyer system and called on Escom to only handle what is within its mandate.

Last year, during a meeting between committee of Natural Resources, Ministry of Justice, Escom, PML, Mera and other stakeholders, the Office of the Attorney General (AG) advised that the single-buyer system should be transferred from Escom to PML by December 31 2021.

However, there is little progress in having PML manage the single-buyer system as Escom still manages the bulk transaction and stabilisation account that PML is supposed to handle.

Failure to finalise transfer of the function of single-buyer system to PML forced the parliamentary committee to engage Escom and PML to appreciate efforts that had been made to resolve outstanding issues.

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