KBC attacks competition commission
The Karonga Business Community (KBC) has attacked the Competition and Fair Trading Commission(CFTC) saying it fed false information to the media on April 29 on the Karonga sugar saga.
The commission said it established that small sugar wholesalers in Karonga are blocked by Simama General Dealers to buy sugar directly from Illovo Sugar (Malawi) Limited through various tricks including non-disclosure of information to other wholesalers, about procedures
for paying for sugar orders and in some cases providing false information about sugar non-availability at the distribution centre.
The Commission further established that small-scale sugar wholesalers are forced to buy sugar from Simama General Dealers or Pezani General Dealers (which is an affiliate of Simama General Dealers) at a price higher than the factory price which forces wholesalers and retailers to charge prices higher than normal.
The business community, in a statement issued on April 29 signed by KBC chairperson Wavisanga Silungwe, described the investigation as false allegations which were unfounded and baseless. The community further states it has been deeply angered and disturbed as it was never consulted.
“These grave malicious and defamatory false allegations emanate as per say from our business members, which we, the KBC distance ourselves as untrue.
In its press statement, the commission stated “it was established that small sugar wholesalers [in Karonga] are blocked by Simama General Dealers to buy sugar directly from Illovo through various tricks including non-disclosure of information to other wholesalers about procedures for paying for sugar orders and in some cases providing false information about sugar non-availability at the Distribution Centre.” KBC has since called on the commission to apologise, failure to which it will take action.
