By Chisomo Phiri
The Competition and Fair Trading Commission (CFTC) has issued an infringement notice to one of Malawi’s cement distributors, Agrocomm Distributors,for allegedly hoarding 7,800 bags of cement weighing 50 kilograms each at its Lilongwe warehouse.
In a notice seen by this publication, CFTC Director of Consumer Affairs, Brenda Bota alleges that the company violated Section 51(a) of the Competition and Fair Trading Act, which prohibits businesses from withholding or destroying producer or consumer goods, or interfering with the means of production and distribution, whether directly or indirectly, with the aim of increasing prices.
She says the commission acted following complaints from consumers who claimed they were unable to access low-cost cement in the city.
Bota notes that Agrocomm, which had been supported by the government to import the product, had allegedly not yet begun selling it.
“A determination will be made once the commission completes its investigations,” she says.
Meanwhile, Principal Secretary in the Ministry of Trade and Industry, Christina Zakeyo, has expressed concern over the incident, saying government was surprised to learn that the company was hoarding cement that was intended to be sold at an affordable price of K26,000 per bag.
She reveals that Agrocomm was among four companies that had received government support amounting to $1 million to import cement from Zambia.
When contacted for comment, Agrocomm Logistics and General Manager, Shebaz Bhaji, declined to respond.
