K4.5 billion bills haunt BWB

Financially struggling Blantyre Water Board (BWB) is facing mounting pressure to settle a K1.6 billion electricity bill by September 14 in the thick of a K2.9 billion court-related liability owed to a supplier.

BWB board chairperson Stanley Chirwa said in an interview last evening that his board was consulting and considering the two matters.

Chirwa: The board is consulting. | Nation

“The board of directors is currently consulting and considering the two matters,” he said.

In a letter to BWB dated September 1 2026, Electricity Supply Corporation of Malawi (Escom) chief executive officer Engineer William Kaipa said BWB failed to honour its commitment of settling K2 billion in August, as it only paid K400 million.

He said: “Be advised that Escom has paid on your behalf amounts in respect of taxes and allocations to independent power producers and levies, which makes up more than 60 percent of a bill.

“This has deprived Escom of much needed resources to carry out its mandate. Escom, therefore, demand the K1.6 billion payment shortfall within the next 14 days.”

In the court-related liability, BWB is facing a judgement debt of K2.576 billion in the case involving information and communications technology supplier Madalitso Chika, with collection costs of K386.5 million bringing the total amount being pursued to about K2.963 billion.

Chika has written the High Court of Malawi Commercial Division seeking it to intercept money belonging to BWB in the hands of several financial institutions and use it to satisfy the judgement.

The application, filed without notice through lawyer Khumbo Soko, asks the court to order the third parties to pay Chika any debt they owe to BWB, or so much of it as is necessary to discharge the judgement debt, pursuant to judgements issued on May 20, 2026 and July 2 2026, together with costs of the application.

Malawi Government Economic Report (2026) shows that between 2024 and March 2026, BWB made determined efforts to stabilise its financial performance following one of the deepest financial crises in the sector.

The report said the board significantly reduced its losses and improved asset utilisation; however, its financial position remains fragile due to aging infrastructure, liquidity pressures and escalating operating costs.

BWB is currently embroiled in court battles between its board of directors and suspended chief executive officer Yeremiah Chihana.

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