Nkhoma (2nd left) flanked by Commissioners Edward Joshua and Kizito Pheleni and PRO Innocent Helema
* Order to refund Haswell Shonga MK2.41 within 30 days and for Mulli Brothers to pay a monetary penalty of 1% of their gross annual turnover to the CFTC
* For engaging in unconscionable conduct, contrary to Section 51 (g) of the Competition and Fair Trading Act
* Also ordered to submit audited financial statements for the immediate past financial year for assessment of the monetary penalty
By Duncan Mlanjira
Competition & Fair Trading Commission (CFTC) has heavily fined Mulli Brothers Limited for “unconscionable conduct” when its denied customer, Haswell Shonga of Lumbadzi in Dowa district access to scrap metal he bought at K36 million.
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This was announced yesterday at a press briefing held at Crossroads Hotel in Blantyre where CFTC disclosed its recent decisions made at its 73rd meeting on June 17, 2025, to consider and adjudicate over cases on anti-competitive business practices and unfair trading conducts.
In his statement, CFTC Chief Executive Officer, Lloyds Vincent Nkhoma disclosed that they launched investigations against Trust Auctioneers and Estate Agents (1980) Ltd and Mulli Brothers Limited after Shonga submitted a complaint that on June 7, 2024 Trust Auctioneers, acting on behalf of their client, Mulli Brothers, conducted an auction at the Mulli Brother’s premises in Mapanga, Blantyre.
During this auction, Shonga successfully, bid for various types of scrap metal worth MK36.010 million and made a part payment of MK21.31 million — but, due to limited space in the truck to transport it to Lilongwe, some items were left at the auction site on agreement that they would be collected on July 7, 2024, upon settlement of the outstanding balance.
“In accordance with the agreement, the outstanding balance was settled in two instalments in June and July 2024,” reported Nkhoma — but when Shonga went to collect the remaining items, “he was informed by Trust Auctioneers that Mulli Brothers had not yet authourised the release of the goods”.
“[Shonga] further alleged that despite several follow-ups for a possible resolution to the matter, neither Trust Auctioneers nor Mulli Brothers provided any favourable assistance.
“Investigations established that when the issue was brought to their attention, Trust Auctioneers engaged officials from Mulli Brothers and explained to them of the need to release the goods or refund the proceeds, which had already been remitted to them. However, Mulli Brothers had done neither.
“The Commission noted that the conduct by both Mulli Brothers and Trust Auctioneers towards the complainant was unfair, unreasonable and without conscience [and] was unconscionable, and thus constitutes an infringement of Section 51 (g) of the Competition & Fair Trading Act (CFTA)“.
Nkhoma thus reported that upon deliberations, the Commissioners ordered that Trust Auctioneers and Mulli Brothers should refund Shonga MK2.41 within 30 days and for Mulli Brothers to pay a monetary penalty of 1% of their gross annual turnover to the CFTC for engaging in unconscionable conduct, contrary to Section 51 (g) of the CFTA.
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Mulli Brothers was also orders to submit to the CFTC their audited financial statements for the immediate past financial year for assessment of the monetary penalty of 1% of their gross annual turnover, within 14 days.
Nkhoma further reported that the CFTC adjudicated over a total of 48 cases, 27 of which were closed at preliminary stage, due to among others lack of merit and early resolution of the issues at hand.
Specifically, three companies have been ordered to pay fines as a percentage of their annual gross revenue, as provided under the CFTA, which include Mulli Brothers, Agri-Build Limited of Lilongwe, Yanu-Yanu Agro-dealer of Nkhoma Trading Centre in Lilongwe and Speed Courier & Logistics Ltd.
On Agri-Build, it was found to have engaged in misrepresentation of products, misleading conduct, and unconscionable conduct as complained by a farmer, who is an agricultural expertafter he suspected that the quality of a bag of D-Compound fertilizer he bought from the Agri-Build shop may have been substandard.
As an agricultural expert, the complaint took samples of the fertilizer for testing at the Department of Agricultural Research Services at Chitedze in Lilongwe where upon testing and analysing, “the fertilizer sample, was found that Nitrogen composition ranged from 2.5% to 2.6% against the standard composition of 10%”.
It was also found that the Potassium composition ranged from 0.44% to 0.46% against the standard composition of 10% — a conduct of selling fertilizer that was misrepresented in that it did not meet the requirements as indicated on the packaging of the sacks.
It was in contravention of section 51 (c) (ii), 51 (d) and 51 (g) of the CFTA and Agri-Build was ordered to pay a monetary penalty of equivalent of 1% of their annual turnover to CFTC for engaging in misrepresentation of products, contrary to section 51 (c) (ii) of the CFTA.
It was also ordered to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in misleading conduct, contrary to section 51 (d) of the CFTA — and a further penalty of equivalent of 1% of their annual turnover for engaging in unconscionable, contrary to section 51 (g) of the CFTA.
Agri-Build was also ordered to submit their audited financial statements for the last accounting year (or in the alternative, their financial records for the last accounting year) for assessment and calculation of the penalty within 14 days. However, the penalty is reduced by 10% for being cooperative with the CFTC during investigations.
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Another agro-dealer, Wayezu Donald trading as Yanu-Yanu Agro-dealer of Nkhoma Trading Centre in Lilongwe was investigated for also engaging in misrepresentation of products, misleading conduct, and unconscionable conduct.
Nkhoma reported that during a shop inspection exercise, it was found that the Yanu-Yanu Agro-dealer was supplying fertilizer which appeared to be counterfeit.
“The fertilizer that the agro-dealer was supplying was branded as ‘Falcon fertilizer’ which is supplied by Export Trading Group (ETG) — however, it was noted that the fertilizer was distinctively different from ETG’s Falcon fertilizer.
The conduct was deemed as deceiving consumers into purchasing fertilizer which is not suitable for the intended purpose and the investigations were launched on the basis that Wayezu Donald’s conduct appeared to amount to falsely representing that products are of a particular style, model or origin in contravention of Section 51 (c)(ii), misleading conduct in contravention of Section 51(d) and unconscionable conduct in carrying out trade in goods, digital products and services contrary to Section 51 (g) of the CFTA.
Wayezu Donald is reported to have admitted re-packaging Optichem fertiliser in ETG fertilizer bags themselves using a machine but before selling, they would inform the customers that the fertilizer had been repackaged.
The agro-dealer told the CFTC that the machine was not bought for the purpose of repackaging to deceive people but because they also farm and grade soya and maize.
He was still found to have engaged in misleading conduct and thus ordered to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in misrepresentation of products, contrary to section 51 (c) (ii) of the CFTA; another 1% of their annual turnover for engaging in misleading conduct, contrary to section 51 (d) of the CFTA; and a further 1% of their annual turnover to the Commission for engaging in unconscionable conduct, contrary to section 51 (g) of the CFTA.
The agro-dealer was also ordered to submit audited financial statements for the last accounting year (or in the alternative, their financial records for the last accounting year) for assessment and calculation of the penalty within 14 days.
Meanwhile, upon receiving a complaint from Joseph Chabwera of Blantyre, the CFTC investigated Speed Courier & Logistics Ltd on allegations of unconscionable conduct in the delivery of its courier services.
Chabwera reported to the CTFC that on December 27, 2024, he engaged Speed Courier & Logistics through their Blantyre office, to transport and deliver a parcel containing a Canon Camera 5D Mark III and a silicon cover worth ¥4,060 (an equivalent of MK1.698 million).
But the camera and the silicon cover were not delivered to the intended recipient as expected and was notified that the package could no longer be traced while also Speed Courier not provide any remedial measures.
It was because of the courier company’s policy to refund goods worth not more than MK300,000 while goods that cost more, require a claim form to be filled and submitted to their insurance company for processing.
Chabwera reported to the CFTC that he filled the form in January 2025 but the delay was due to its own investigations.
“The Commission noted that the service that [Speed Courier] provided to [Chabwera] was grossly defective in the sense that the subject parcel was not delivered, as it appears to have gotten lost.
“Furthermore, Speed Courier was not forthcoming to timely update the complainant on the delay or failure to deliver the parcel within the stipulated timelines.
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“Nevertheless, it should be considered that Speed Courier duly accepted liability, and demonstrated willingness to assist the Complainant.
“In this regard, the conduct by Speed Courier does not amount to excluding liability for defective goods or services. The Commission also noted that much as the Speed Courier accepted liability, their approach in handling the Chabwera’s claim for a refund or a replacement of the items shows that [it] failed to provide effective redress on the matter.
“It is clear that the Speed Courier’s conduct was unreasonable and without conscience, and hence unconscionable” — thus ordered to refund Chabwera an amount equivalent to the market value of the Canon Camera 5D Mark III within 30 days.
Speed Courier was also ordered “to cease and desist from engaging in unconscionable conduct [and] to undergo a mandatory competition and consumer protection law compliance programme facilitated by the Commission.
The courier company was also ordered “to review and strengthen their communication and internal complaints handling mechanisms”.
In total, CFTC ordered companies to pay a total refund of K4.1 million to consumers and Nkhoma reported that earlier this year, they issued 13 interim orders to companies for conducts such as exploitative pricing in the sale of fertilizers, bread and poultry feed.
“We have made significant progress on the cases, however, the completion of the cases has been impinged upon by reasons beyond our control such as court processes and inability of the respondents to provide concrete evidence for their conducts as requested by the Commission.
“This has consequently led to some respondents asking for adjournment of the cases, until the next Commission’s meeting and upon completion of the court cases.”
