The United States government has asked the Malawi government to sell off the Electrical Supply Cooperation of Malawi (ESCOM) and not dismantle the company into two parts as initially proposed.
Malawi24 can reveal that the Millennium Challenge Corporation (MCC) is pushing the already financially unstable Peter Mutharika's government to offload the electricity body. Earlier last month Malawi24 first revealed that the Malawi government is planning to offload the power supply body.
Despite this, officials from both government and ESCOM have been denying the reports claiming that it is not a sale of the entity but dividing it into two.
But another close source who caught up with this publication maintained that the reports are authentic and hundred percent true. He said that currently MCC is threatening to stop funding ESCOM unless it is sold to foreign American companies who will end up charging exorbitant bills for the electricity that will be produced.
He added that MCC has put in place some of its strategic plan on how the company will operate once sold. One of it is to have employees above 39 years age retire.
He stated, "Government is failing to open up to its people. This is not dismantling the company, but selling the whole of it to American based companies. MCC is threatening to stop funding projects unless it is sold to foreign investors."
"Negotiations are underway and these foreign companies have clearly stated they will not maintain anyone above 39 years," revealed the source.
MCC is a bilateral United States foreign aid agency established by the U.S. Congress in 2004. It is the biggest donor partner for ESCOM.
Malawi was considered eligible for a compact aid grant after scoring 17 indicators exceeds the median score of its peer group.
Among the project MCC is funding is the Outsourcing Policy on Distribution Network in which earlier this year, the Malawi government was allocated with MK12 Billion from the account.