President Arthur Peter Mutharika is facing scrutiny after documents emerged suggesting he intervened in a K12.24 billion ESCOM transformer procurement that had already received clearance from Malawi’s procurement regulator.
The contract concerned the supply and delivery of 33-kilovolt (kV) distribution transformers.
According to official records, the Public Procurement and Disposal of Assets Authority (PPDA) had granted a no-objection for Creck Hardware and General Suppliers to undertake the project.
However, the matter was later referred to the Office of the President and Cabinet (OPC), prompting questions about why a procurement process that had already been cleared by the regulator required presidential consideration.
Documents seen by this publication show that Mutharika questioned whether authorities had established the ownership of the companies involved before directing that the proposed deal with Creck Hardware should not proceed.
The development has reignited debate about political involvement in public procurement, with critics arguing that decisions on government contracts should be left to institutions mandated by law to oversee procurement processes.
Some governance advocates say intervention by political offices in procurement matters risks undermining transparency and the independence of regulatory bodies established to ensure fair competition and value for money.
The controversy has also raised concerns about the treatment of local businesses seeking government contracts, particularly where companies have already met procurement requirements and obtained regulatory approval.
The revelations come amid wider scrutiny of ESCOM’s procurement practices.
In a separate K8.1 billion procurement involving transformers and metering units, PPDA rejected the utility’s decision to award a contract to Clavic General Suppliers after finding that the company was not the lowest evaluated bidder, contrary to the bidding requirements.
PPDA subsequently instructed ESCOM to re-evaluate the procurement process in line with procurement laws.
The power utility is also facing questions over reports that contracts worth about K40 billion for the supply of wooden poles could be awarded to three companies.
The succession of procurement disputes has intensified calls for public institutions to adhere strictly to procurement laws and for political leaders to avoid involvement in procurement decisions once regulatory processes have been completed.
ESCOM spokesperson Pilirani Phiri said it would be premature to comment on the procurements because the processes remain active and confidential.
He added that no notices of award had been issued.
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