Tag Archives: Competition and Fair Trade Commission (CFTC)

Business

CAMA wants Govt to probe on cooking oil price hike

Dorica Mtenje

LILONGWE-(MaraviPost)-Consumer Association of Malawi (CAMA) called upon the ministry of trade to investigate the cooking oil price increase.

CAMA Executive Director John Kapito told The Maravi Post in an interview on Tuesday, July 8, 2024 that the trade ministry needs to investigate and inform consumers on cooking price increase despite many strategies government had announced last year.

Kapito said government announced the opening up to many traders specifically supporting local traders to go into production of cooking oil.

“We believe that opening up of local traders last year would control unnecessary and unexplainable price increases on cooking oil,” said Kapito.

He adds that Increases of cooking oil are coming at a time when consumers are increasingly facing economic challenges and the consumer body is monitoring the market to understand the reasons behind these unfortunate increases both traders and government .

He further said government must understand that consumers are now tired with these never ending unexplained price increases which do not correspond with their incomes.

In his remarks competition and Fair Trade Commission ( CFTC)Public Relations Officer , Innocent Helema said they have observed that cooking oil scarcity on the market have taken sellers advantage to raise prices somehow.

Helema said CFTC will conduct price monitoring exercise from next week across the country to ascertain such allegations of price increases for basic goods and services including cooking oil.

“We will take to task anyone found to be violating the Competition and Fair Trading Act (CFTA)as excessive pricing is one such violation provided for in the CFTA 2024 which can attract such penalties.”said Helema.

He however said Traders must be aware that the Competition and Fair Trading Act (CFTA) of 2024, which entered into force on 1st July, 2024, provides for stiffer penalties which can be up to 10 percent of annual turnover .

Meanwhile several shops have hiked 2 litre bottle of cooking oil from MK7500 to MK10, 000.

Business, Health

“Don’t buy Cool Drop bottled water, it’s contaminated”-CFTC warns Malawians

Maravi Post Reporter

BLANTYRE-(MaraviPost)-The Competition and Fair Trading Commission (CFTC) is urging the general public not to buy or consume water from five batches of Cool Drop Bottled Natural Mineral water manufactured by Zamm Investments which contains some visible foreign objects.

In a press statement issued on Tuesday, March 19, 2024 and signed by its Executive Director Lloyds Vincent Nkhoma, “The warning goes to traders and the general public is because it has received communication that batch numbers; BTH277, BTH016, BTH253, BTH018 and BTH291 of Cool Drop Bottled Natural Mineral water manufactured by Zamm Investments do not meet the stipulated Malawi Standards”.

Nkhoma adds, “The communication which the Commission received indicates that sealed bottles of water from the affected batch numbers have visible foreign sediments inside the sealed water bottles which contravenes Malawi Bureau of Standards act and the applicable Malawi mandatory standard MS 560:2004”.

It is reported that MBS found that the delay in changing of filters and membranes by the producer resulted in the contamination of the bottled water resulting in the presence of visible foreign objects in the aforementioned batches.

“This finding is also in violation of Section 43(1)(e) the Competition and Fair Trading Act (CFTA) which provides as follows: A person shall not, in relation to a consumer supply any product which is likely to cause injury to health or physical harm to consumers, when properly used, or which does not comply with a consumer safety standard which has been prescribed under any written law.

“In view of the above, CFTC would like to inform traders not to sell the subject batches of the product, if they have them in stock. CFTC is also advising consumers to take necessary precaution not to purchase or consume the said batches of the product,” reads part of the statement.

CFTC further advises , “Consumers must return any such products to their suppliers, and get a full refund if they already purchased the same and has also encouraged consumers who may have purchased the subject product, and have proof of purchase, to report to the commission through its toll free line, 2489 and WhatsApp line, +265 987738749”.

This is the second time Zamm Investments’ Bottled water has been found with foreign objects.

Business

“Release traders’ names holding sugar”- CAMA tells Fair Trading Commission

Dorica Mtenje

LILONGWE-(MaraviPost)-The country’s Consumer Association of Malawi (CAMA) has demanded Competition and Fair Trading Commission (CFTC) to release names of traders holding sugar that has become a scarcity commodities on the local market.

CAMA has also bemoaned sugar’s exorbitant prices on the market.

In a statement signed by CAMA Executive Director, John Kapito state that consumers continue to experience scarcity and high prices of Sugar on the market though sugar is a controlled commodity with no competition regarding the competition and distribution.

Kapito observes that the CFTC which President Lazarus Chakwera ordered to investigate and inform the nation on the reasons behind sugar scarcity on the market has not release a comprehensive report till date.

He adds that sugar distribution and pricing has remained a challenge to consumers by a syndicate of corruption saying, “Producers and distributors are taking advantage of consumers who are already going through the highest cost of living”.

He therefore called upon ministry of Trade to immediate intervene and assist consumers to access sugar at the recommendable price.

Over three months now, Malawi has been grappling with scarcity of sugar as both government and producers have not come up with concrete reasons why the commodity is scarce on the market.

Business, Law and order, Malawi

Airtel Malawi dismisses CFTC’s MK2.1bn fine on “Khethekhethe” bonus; Dates court

Maravi Post Reporter
Charles Kamoto not happy with CFTC fine

LILONGWE-(MaraviPost)-The country’s smartphone network provider Airtel Malawi has dismisses charges Competition and Fair Trade Commission (CFTC) leveled against that it duped customers on “Khethekhethe” bonus.

Airtel observes that MK2.1 billion fine is non-starter arguing that charges leveled against it before the CFTC does not agree with the consequential decision.

In a press statement made available to The Maravi Post, Airtel Malawi’s Managing Director Charles Kamoto says the company will pursue the matter further in the court for intervention.

“Airtel Malawi Plc notes the decision by the Competition and Fair Trading Commission (CFTC) relating to its KhetheKhethe customer loyalty bonus programme.

“The Company denied the charges leveled against it before the CFTC and does not agree with the consequential decision,” says Kamoto.

He added, “The Company is pursuing the matter further in court.Airtel complies and continues to fully comply with the relevant and applicable laws and has not committed any unfair trading practice or provided any misleading, false or deceptive information or made false representation to the public.

“We wish to reiterate our commitment to conducting business within the applicable legal and regulatory framework and continue to deliver reliable and value-adding services”.

The country’s Competition and Fair Trade Commission (CFTC) on Wednesday fined mobile phone operator, Airtel Malawi with a sum of K2.1 billion for being found guilty of engaging in “unconscionable conduct” with respect to the rewarding of its “Khethekhethe” bonus.

CFTC acting executive director Apoche Itimu told the new conference in the capital Lilongwe on Wednesday, September 29, 2021 that the Commission launched an investigation on September 16, 2021 against the Malawi Stock Exchange (MSE) listed Airtel Malawi following several complaints from consumers.

Business, Law and order, Malawi

Malawi Competition & Fair Trade agency fines Airtel with MK2.1bn for duping customers on “Khethekhethe” bonus

Maravi Post Reporter
Airtel Malawi Managing Director Charles Kamoto

LILONGWE-(MaraviPost)-The country’s Competition and Fair Trade Commission (CFTC) has fined mobile phone operator, Airtel Malawi with a sum of K2.1 billion for being found guilty of engaging in “unconscionable conduct” with respect to the rewarding of its “Khethekhethe” bonus.

CFTC acting executive director Apoche Itimu told the new conference in the capital Lilongwe on Wednesday, September 29, 2021 that the Commission launched an investigation on September 16, 2021 against the Malawi Stock Exchange (MSE) listed Airtel Malawi following several complaints from consumers.

“It was alleged that the respondent (Airtel Malawi) stopped automatically crediting customer accounts with monthly bonuses, instead, it was alleged that customers were required to apply for the redemption of their bonuses on the 14th of every month.

Consequently, who for one reason or another did not redeem their bonuses, had them forfeited,” said Itimu.

According to her, it was further alleged that the unredeemed bonuses were later appropriated and sold to other customers on the 15th.

By failing to promptly pay Khethekhethe bonus to all deserving customers who reached a minimum threshold of MK1,000 per month, and consequently forfeiting the same to the company’s advantage, Itimu said Airtel Malawi made a financial gain of about MK2.1 billion, thereby acting unreasonably and without conscious.

“The Commission therefore ordered Airtel to pay a fine of MK2,113,099,660 for engaging in unconscionable conduct in the trade of goods and services.This represented financial gain generated from the offence,” she charges.

Airtel Malawi official refused to comment on the matter as we went to press.

Business, Malawi

Malawi fuel prices’ increase push up passenger fares

Special Absalom

 

Less than a week after the Malawi Energy Regulatory Authority (Mera) adjusted fuel pump prices upwards, minibus operators in the country have started raising passenger fares.

Mera announced the increase of fuel prices on Friday, claiming it noted sustained high Fuel On Board (FOB) prices of oil on the international market to ensure that importers are able to fully cover importation costs and to enable sustained flow of petroleum products (petrol, diesel and paraffin) into the country.

Some minibus operators plying their businesses in Blantyre have since raised fares by MK50 while others have increased by MK100.

Minibus Owners Association of Malawi (Moam) acting national chairperson Felix Mbonekera Msiska confirmed the development in an interview on Wednesday, saying following the fuel price hike, the association has been discussing with minibus operators to revise passenger fares.

However, he could not be drawn to comment on the agreed percentage, saying operators are at liberty to set fares for their minibuses.

Said Msiska: “We have a forum where we discuss these issues and we all agreed on the need to revise fares upwards. However, this is a liberalised business and as Moam, we cannot dictate on fares. We will only ensure they do not charge exorbitantly.”

In 2012, the Competition and Fair Trade Commission (CFTC) ordered Moam to cease and desist from engaging in anti-competitive business practices by regulating fares.

Reacting to the minibus fare hike, Passenger Welfare Association (Pawa) president Don Napuwa criticised minibus operators, saying the fares adjustment is not justifiable.

“They are just being greedy. Last time fuel price was raised by 5 percent and they increased fares by 13 percent. Bus fares have to be realistic, otherwise they will become unaffordable,” he said.

Napuwa urged government to engage transport operators to come up with free trade formulae.

“We are a liberalised economy yes, but government controls fuel and maize prices. Passengers too need protection,” he added.

Mera increased the pump price of petrol from MK888 to K932.50, diesel from MK890.90 to MK935.60 and paraffin from MK719.30 to MK755.30 a move which is likely to push up the cost of other commodities.