On 25th September, 2024, the Commission commenced investigations against Paramount Holdings Limited on allegations of excluding liability for defective goods; misleading conduct and unconscionable conduct. The investigations were instituted following a complaint.
The Complainant alleged that on 7th January, 2024, he bought 70 bags of Paramount Gold NPK 23:10:5: 6S+1.Zn fertilizer at MK6,160,000 along with some 108 bags of UREA fertilizer from Paramount Commodities shop in Balaka. The Complainant wanted to use the fertilizer at his farm in Ntcheu. However, the Complainant suspected that the fertilizer was substandard.
Following his suspicions, the Complainant took samples of the fertilizer to the Malawi Bureau of Standards (MBS) for testing. According to the test results, the fertilizer was found to lack crucial major nutrients and that it was substandard.
The investigations found that the Respondent engaged in excluding liability for defective goods and services and engaged in conduct that is likely to mislead the public in contravention of Section 51(b) and Section 51(d) of the CFTA, respectively. The Respondent also engaged in unconscionable conduct in contravention of Section 51 (g) of the CFTA.
During investigations the following were further noted:
- That Paramount Holdings was contracted by the Ministry of Agriculture through the Mega Farm Support Unit to supply fertilizers NPK (23:10:5+6S+1.02n) and UREA 46%N to maize mega farmers under Malawi Agriculture and Industrial Investment Corporation (MAIIC) credit facility.
- That over the years, Paramount Holdings has been importing fertilizers under the brand of “Paramount Gold” composed of the following types: NPK 23:10:5+6S+1.0Zn, UREA 46%N, CAN27%N, Ammonium Sulphate 21%N:24%S. The fertilizer originates from different countries with more quantity imported from United Arab Emirates (UAE).
- That MBS already fined the Respondent for supplying substandard fertiliser. The Respondent was also instructed to address the non-conformity of the fertilizers to ensure that the fertiliser conforms to standard requirements.
- That MBS was also mandated to confiscate the defective batch of NPK fertilizer to prevent further sale of the commodity. However, the concerned batch was sold out/ out of stock at that time, hence no further action was undertaken.
The Commission considered that the Respondent had already paid a fine imposed by MBS and as a result the Commission could not impose another fine.
Following deliberations, the Commission ordered the Respondent to refund the Complainant MK6,160,000.00 being the amount paid to purchase the defective fertiliser.