In March 2025, the Commission launched investigations against Trust Auctioneers and Estate Agents (1980) Ltd, and Mulli Brothers Limited. The investigations were instituted following a complaint received from Mr. Haswell Shonga of Lumbadzi, Dowa who made a number of allegations.
The Complainant submitted that on 7th June 2024, the First Respondent, acting on behalf of their client, Mulli Brothers, conducted an auction at the Mulli Brother’s premises in Mapanga, Blantyre. During this auction, the Complainant successfully bid for various types of scrap metal worth MK36,010,000.00 and made a part-payment of MK21,310,000.00. However, due to limited space in the truck that the Complainant used to transport the scrap metal to Lilongwe, some items were left at the auction site on agreement that they would be collected on 7th July 2024, upon settlement of the outstanding balance.
In accordance with the agreement, the outstanding balance was settled in two instalments in June and July 2024. However, when the Complainant went to collect the remaining items, they were informed by the First Respondent that Mulli Brothers had not yet authourised the release of the goods.
The Complainant further alleged that despite several follow-ups for a possible resolution to the matter, neither Trust Auctioneers nor Mulli Brothers provided any favourable assistance.
Investigations established that when the issue was brought to their attention, Trust Auctioneers engaged officials from Mulli Brothers and explained to them of the need to release the goods or refund the proceeds, which had already been remitted to them. However, Mulli Brothers had done neither.
The Commission noted that the conduct by both Mulli Brothers and Trust Auctioneers towards the Complainant was unfair, unreasonable and without conscience. The conduct by the Respondents was unconscionable, and thus constitutes an infringement of Section 51 (g) of the CFTA.
Upon deliberations, the Commission made the following orders:
- Order Trust Auctioneers and Mulli Brothers to refund the Complainant the total sum of MK2,410,000.00 within 30 days.
- Order Mulli Brothers to pay a monetary penalty of 1% of their gross annual turnover to the Commission for engaging in unconscionable conduct, contrary to Section 51 (g) of the CFTA.
- Order Mulli Brothers to submit to the Commission their audited financial statements for the immediate past financial year for assessment, within 14 days.