Court reprieve for Illovo Sugar in price hike dispute

Malawi's High Court Commercial Division has granted a stay order to Illovo Sugar Malawi, stopping the Competition and Fair Trading Commission from effecting its determination to reduce sugar prices pending an appeal. The Times reports that the stay follows a determination by the commission on 23 August, when it faulted Illovo Sugar Malawi for hiking sugar prices in October last year. In its determination, the commission resolved to issue an advisory note to the Ministry of Trade & Industry to compel Illovo to reduce sugar prices, taking into account that the company does not have a mandate to control smuggling using prices or other means. It also recommended that the Director of Public Prosecutions prosecute Illovo over the matter for allegedly violating Section 43(1)(g) of the Competition and Fair Trading Act. But Judge Charlotte Wezi Malonda has ordered that the determination be stayed, pending the appeal by Illovo Sugar. The court has further ordered that Illovo file an application with notice for stay within 21 days. Last week, Ministry of Trade spokesperson Mayeso Msokera said the Ministry was reviewing the commission's advisory opinion. In its determination, the commission also resolved that it would issue an advisory note to the Ministry to ensure that the supply of essential commodities such as sugar is not shielded from import competition in situations where domestic beneficiaries under the Control of Goods Act are abusing their position or engaging in unfair trading practices. Last week, the Consumers Association of Malawi backed the commission decisions.