BWB, ISAMA UNDER FIRE from cftc

The Competition and Fair Trade Commission (CFTC) has ordered the Blantyre Water Board (BWB) to stop its policy of deliberately delaying reconnection of water supply to its customers as means of punishment.

The Independent Schools Association of Malawi (Isama) has also come under fire from CFTC for reportedly fixing school fees among its members and also regulating where its members can open schools and who to admit as students or recruit as teachers.

Price fixing is a violation of Section 34 of the Competition and Fair Trading Act.

CFTC chief executive Charlotte Malonda told a press conference in Lilongwe yesterday that investigations by the commission established that BWB was engaged in unfair trade practices.

She said: “Under the policy, consumers whose supply was disconnected due to non-payment of outstanding bills are only reconnected after three days upon payment of outstanding balance and a penalty.

“This is not only unfair, oppressive and without conscience, it also amounts to gross abuse of the company’s status as a monopoly.”

BWB has been ordered to issue a press statement in newspapers and on the radio announcing withdrawal of the policy.

Malonda said failure to comply within seven days would result in prosecution which results in a penalty of K500 000 or imprisonment for five years, as stipulated in sections 50 and 51 of the Competition and Fair Trading Act.

CFTC was established to regulate markets and safeguard competition for the benefit of consumers.