Cama seeks reforms amid K188 billion State firm risk

The Consumers Association of Malawi (Cama) has called for merit-based appointments and stronger parliamentary scrutiny of State-owned enterprises (SOEs), citing political interference and weak financial controls as factors undermining their performance.

In a letter dated October 9, 2026, addressed to the Clerk of Parliament, Cama Executive Director John Kapito said poor management and weak accountability have contributed to poor service delivery, leaving consumers paying high tariffs for inadequate services.

The call comes as the World Bank estimates that government faces potential losses of K188 billion from lending to and guaranteeing loans for struggling public enterprises.

“Malawians are affected by the poor service delivery of many of these SOEs and their frustrations continue to be expressed but no one is listening and nothing is changing,” Kapito said.

He cited the Electricity Supply Corporation of Malawi (Escom), the Electricity Generation Company, water boards, the National Oil Company of Malawi (Nocma) and the Agricultural Development and Marketing Corporation (Admarc) as enterprises requiring stronger parliamentary oversight.

Cama wants board members, chief executive officers and senior managers appointed on merit, with clear performance targets and consequences for failure.

The association believes parliamentary committees dedicated to overseeing SOEs could improve efficiency, strengthen accountability and ensure public institutions deliver services that meet consumers’ expectations.

However, Centre for Social Accountability and Transparency Executive Director Willy Kambwandira said establishing additional parliamentary committees would not address the underlying problems.

“Malawi does not suffer from a shortage of oversight committees; it suffers from a chronic failure of oversight and accountability.

“Establishing more committees without addressing the weaknesses of the existing committees would merely expand bureaucracy, consume public resources and create another layer of political theatre,” Kambwandira said.

He called for existing parliamentary oversight structures to operate independently and professionally, with adequate resources to carry out their duties.

Meanwhile, the World Bank’s September 2026 Malawi Economic Monitor estimates potential losses of K98 billion linked to Escom, K42 billion for the Northern Region Water Board, K34 billion for Nocma and K14 billion for the Blantyre Water Board.

Treasury spokesperson Williams Banda said SOEs need turnaround strategies to address their indebtedness and improve efficiency.