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Escom profits are a challenge
By
Our Reportert - 20-06-2002 |
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Comment
The Electricity Supply Corporation of Malawi’s declaration of K1.3 billion profits in 2001 financial year enabling it to pay a total of K450 million as a dividend to government and also service its debts should be looked at as a challenge to other parastatals that with prudent financial management, it is possible to turn round a sinking company into a money spinner.
From the look of things Escom is one of the few parastatals that have achieved this feat.
Times without number we have argued that it is grossly unfair to taxpayers to carry the yoke of funding nonperforming utility parastatals through government subventions and at the same time pay huge bills after a poor service. To put it more bluntly, some parastatals are simply dinosaurs gnawing at the country’s scanty resources.
This is not to say Escom should take advantage of their monopoly status and summon all their energies to make colossal profits this year at the expense of poor consumers who barely make ends meet.
On the contrary, the corporation has an obligation and social responsibility to plough back to society the huge profits they have made by improving their service which more often than not has left a lot to be desired.
The utility has achieved such a high profit margin at a time when its generation capacity is down by 20 percent. This is compounded by the persistent blackouts that consumers have always complained about.
Then, at the moment only five percent of the 11 million population has access to electricity. This is far from being ideal and calls for a deliberate effort by Escom to reverse the situation.
We urge Escom that instead of basking in this unprecedented success, it should aim at reaching out to more people. Only then will its success be meaningful to the country at large.
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