Minister Gwengwe during the press briefing yesterday
* Thus asked to be vigilant and report any suspected case of unfair trading practices through toll-free line: 2489
* As the Ministry closes over six businesses for gross trade-related violations on the market
* Ministry, CFTC and MBS will continue performing the market surveillances on a daily basis until sanity is restored
By Patricia Kapulula, MANA & Duncan Mlanjira, Maravi Express
In order to help in the creation of a market place that upholds fairness, safety, legality and builds trust with the public, the Ministry of Trade & Industry implores on the public to be vigilant and report any suspected case of unfair trading practices through toll-free line: 2489.
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The plea was asked by Minister of Trade & Industry, Sosten Gwengwe at a press briefing in Lilongwe yesterday, where he announced that on Monday, the Ministry sealed off over six business entities for gross trade-related violations.
This follows a routine market surveillances that the Ministry is conducting in all parts of this country in collaboration with Competition & Fair Trading Commission (CFTC) and Malawi Bureau of Standards (MBS).
The business entities that have been sealed off include Kanyimbo General Dealers, Sara General Dealers, Fatima Agro Dealers, Sana Area 10 Butchery, Foodworth Butchery, Dalitso General Dealers, among others.
The closure of the business entities is in pursuant to the Business Licensing Act, that mandates the Ministry to enforce fair business practices on the market and close those businesses that are deemed to be breaking the law and Gwengwe stressed that “they will remain closed”.
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The Minister said there has been rampant abuse of trading practices on the market, such as overpricing deliberately and selling substandard products that are not fit for consumption.
He, therefore, said his Ministry will continue to perform intense market surveillance on a daily basis until sanity is restored on the market.
“The public is the best informant of shops that are arbitrarily overcharging prices or selling substandard products,” he said, as he encouraged consumers to be vigilant and report such companies and shops through the 2489 tollfree line.
Present at the press briefing was MBS deputy Director for quality assurance responsible for product certification inspectorate services, Edward Kumvenji, who said the exercise is achieving its intended purpose of ensuring that products on the market are worthy for the consumer to patronise.
“The exercise is also meant to ensure that the consumer is well sensitised on what to expect on the market as well as their responsibility to report back to relevant authorities on deceptive products,” he said.
Edward Kumvenji
Secretary for Trade & Industry, Christina Zakeyo, followed up with a public statement, saying the Ministry “looks forward to creation of a market place that upholds fairness, safety, legality and builds trust with the public”.
Zakeyu further indicates that as one way of stabilising prices, the Ministry is working with the Reserve Bank of Malawi (RBM) “to consider supporting with forex for companies involved in the supply of basic essential commodities like soap, sugar, matches, cooking oil to ensure that a common man is not struggling”.
“The Ministry has also strengthened the Control of Goods Act (COGA) in the last Parliament [sitting]. The aim is to restrict importation of goods that are locally produced in adequate supply.”
She thus amplified the plea the Minister of Trade made encouraging the public to work with the Ministry in reporting of any suspected case of unfair trading practices.
Vincent Lloyds Nkhoma
Also present at the press briefing was CFTC Executive Director, Vincent Lloyds Nkhoma, who assured the public that the Commission remains committed to the process and ensure that consumers have a fair trade environment.
As one way of ensuring a secure market, CFTC and the Ministry of Trade & Industry reviewed and amended the Competition and Fair Trading Act (CFTA) last year, replacing the old one that was enacted in 1998 to address shortfalls in enforcement.
The CFTA 1998 had been in operation for 26 years and CFTC and the Ministry saw it prudent to amend it after it became a trend by big businesses to continue breaking the law opting to become perpetual offenders of unfair trading practices because the punishment fine of K500,000 — which was high then when the CFTA was enacted in 1998, had become too little to dent their annual turnover.
Thus the old law (CFTA, 1998) was repealed and enacted paving way for the new law (CFTA, 2024), which became operational on July 1, 2024.
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The amended law thus comes with it stiff penalties for its perpetual offenders as fines now attract up to 10% of gross annual turnover for enterprises and companies and up to 5% for natural person.
Aggravating and mitigating factors are being considered — thus the percentage of ‘up to…’ while imprisonment of up to 5 years imprisonment if in default, was removed as part of penalties but just fines as they are not criminal in nature (CFTC v Airtel Malawi Plc case).
The following are some of the gross violations of the trading violations in pictures of rotten and expired foodstuffs, still on the shelves, unhygienic stores, among others, which MBS discovered over the past two weeks:
Appalling unhygiene at Sana Wholesale in Limbe