On 1st February, 2024, the Secretariat of the Commission commenced investigations against Simama General Dealers Company Limited on allegations of withholding of goods, misleading conduct and unconscionable conduct in carrying out trade in goods and services.
The investigation was instituted following an inspection that was conducted at their shops in Area 23 and Area 25 in Lilongwe on 29th January, 2024 and 7th March, 2024 respectively. During the inspections, it was found that the Respondent’s premises had volumes of sugar stocked in their container shops, and were not being offered for sale to consumers.
Upon being asked to explain why the sugar was not being sold, the sales’ attendants at the shop conceded that they were instructed by their superiors not to supply the sugar to customers until notified to do so.
It was also noted that when the nation was experiencing scarcity of sugar, the Commission engaged several sugar wholesalers across the country to explain the reasons why they were selling sugar at a price higher than the price recommended by Illovo, the manufacturer. According to most wholesalers, this was attributable to the Respondent. According to them, the Respondents supplied them sugar at prices that ranged from MK58,000 to MK60,000 per a 20kg bale of sugar which was way higher than the then recommended price of MK37,500 per 20kg bale of sugar. Further, it was gathered that the Respondent was not issuing receipts when they sold the wholesalers sugar at the higher prices.
Upon deliberation, the Commission referred the matter to the DPP to institute criminal proceedings against the Respondents for withholding goods and engaging in misleading conduct and unconscionable conduct in the trade of goods.