Alleged Unconscionable Conduct by Peacock Seed Enterprises Limited

The Secretariat received a complaint alleging that Peacock Seed Enterprises Limited supplied the complainant with 28,250 kg of maize seed worth MK 9,785,868.75 during the 2016/17 season.

The Complainant was to be paid MK 8,992,292.69 of which she was only paid MK6,600,000.00, leaving a balance of MK 2,392,292.69.

Investigations established that there was a contract that was signed between the parties under which the Complainant satisfied her obligations by supplying the maize seed as per the contract.

However, the Respondent did not fully fulfil their obligations as they had not paid the full amount for the contracted volumes.

The Commission concluded that the Respondent had contravened Section 43(1)(g) of the CFTA. Secretariat reported that they had received information in form of copies of cheques, showing that the Respondent had paid the outstanding balance.

Following deliberations, the Commission made the following orders:

  1. The Secretariat should verify with the Complainant that the Respondent paid the Complainant the outstanding balance of MK 2,392,292.69.
  2. The Respondent should pay a fine of Five Hundred Thousand Kwacha (MK 500,000) for engaging in unconscionable conduct; and
  3. The Respondent should cease and desist from engaging in unconscionable conduct towards seed growers.