POSTAL ADDRESS P.O. Box 5992, Limbe E- MAIL ADDRESS: info@cama.

mw

CONTACT NUMBERS Cell: +265 (0) 111 625 115 Cell: +265 (0) 111 625 234

15th August, 2013 PRESS RELEASE ESCOMS DONATION OF THIRTY FIVE MILLION KWACHA TO THE PRESIDENT We are shocked as a Consumer body to learn that the Electricity Supply Corporation of Malawi (ESCOM) in its current poor financial status has donated to the Presidential Initiatives on Safe Motherhood an amount of Thirty Five Million Kwacha. We are greatly shocked because the donation to the President is being done at a time when; 1) ESCOM tariffs are continuously being adjusted upwards and consumers can no longer afford the current escalating tariffs; 2) Consumers have continuous black outs in the country and ESCOM can not generate enough power to meet the current consumer demand;

3)

Currently ESCOM is failing to connect

Electricity

to

many Malawians and citing lack of funding as one of its challenges and thereby consumers are charged high costs in order to get connected to electricity; 4) ESCOM is continuously claiming that it is unable to break even and make profits with the current tariffs hence its failure to rehabilitate its plants and generate enough power due to lack of funds; 5) ESCOM is failing to adjust salaries for its many underpaid members of staff;

6)

ESCOM is rated as one of the worst performing Statutory Corporations in the country.

We are concerned that ESCOM whose operations are poor would have such large sums of money to donate which simply raises a number of questions on its credibility. We would believe that ESCOM Board and Management are simply looking for political patronage and sympathy from the President with such donation for their own economic and political relevance.

Additionally we are also shocked with President Banda who happens to be the head of civil and public Service to accept funds from poorly underperforming institutions such as ESCOM to support her personal poorly budgeted political campaigns. We want ESCOM that is transparent and accountable to its consumers who are heavily burdened by the high electricity tariffs and frequent black outs. John Kapito

Executive Director Consumers Association of Malawi