Mostly its roof iron sheets
* As some traders demand pre-payment when they don’t have the goods in stock or capacity to supply
* Which is a violation of section 43 (1)(g) of the Competition and Fair Trading Act (CFTA)
By Duncan Mlanjira
The Competition & Fair Trading Commission (CFTC) says it has in the past six months been receiving complaints from consumers regarding the conduct by some traders who are receiving prepayment for goods, especially building materials such as iron sheets, when they are well aware that they do not have the goods in stock or capacity to supply within the shortest time possible.
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In a statement issued today, April 24, CFTC says consumers are, consequently, made to wait for months without the goods being delivered — thus affecting their construction schedules.
“CFTC would like to request consumers to be on the lookout for such traders,” said the statement from Executive Director, Lloyds Vincent Nkhoma. “While we are investigating these cases and have resolved others, the CFTC would like to warn traders of building materials and other products that such malpractice is unconscionable and, therefore, a violation of section 43 (1)(g) of the Competition and Fair Trading Act (CFTA).
“CFTC will not hesitate to take to task anyone found engaging in this malpractice,” Nkhoma said, while reiterating CFTC’s constant calls encouraging the general public “to be very proactive in reporting any possible violations including the above mentioned malpractices”.
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The public can report through Toll Free Line 2489 or WhatsApp +265 987 738 749.
Just on Monday, following the announcement on the increase of prices of sugar made by Illovo Sugar Malawi Plc, CFTC announced that it is in process of engaging the company to enquire on the reasons behind the upward adjustment.
When asked if they were aware of the decision by Illovo, CFTC’s public relations officer, Innocent Helema said they also have taken note of the development — thus their going forward to engage Illovo Sugar Malawi.
“This may culminate into a full-fledged investigation against the company depending on the explanation we get,” he said, adding that this will be after writing to the company to explain the reasons behind the increase — as per “the standard practice on matters of this nature”.
“We are also alive to the fact that this increment comes barely five months after the company effected a 33% increment on sugar products following the currency realignment,” he said.
“CFTC was established to, among others, safeguard consumer welfare. We, therefore, take issues of price increases seriously as they have a bearing on the very consumer welfare we are established to safeguard.”
According to a notice from Illovo dated April 20, 2024, recommended retail price of 1kg packet of brown sugar has been pegged at K2,300 with refined sugar at K2,600 per kg.
This comes as the company is rolling out its sugar production ready for distribution as the country expects normalization of the commodity on the market, which has been scarce across the country leading to some unscrupulous traders to hoarde it in order to soar its prices on the market.
After buying from distributors at exorbitant prices, retails traders also adjusted their prices from the recommended prices of K2,000 as of January to as high as between K4,000 and K5,000 for the 1kg packet of brown sugar.
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