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Cdedi wants AG to act on sugar injunctions

 Centre for Democracy and Economic Development Initiatives (Cdedi) has asked Attorney General (AG) Thabo Chakaka-Nyirenda to act on two court orders that Illovo Sugar (Malawi) plc obtained against the State on pricing.

The sugar manufacturer last year obtained injunctions restraining the Competition and Fair Trading Commission (CFTC) and the Ministry of Trade and Industry on sugar pricing.

In its letter to the AG, Cdedi said vacating the court order would reduce the suffering Malawians are enduring due to the scarcity of sugar that has led to a rise of its price.

Namiwa: Consumers are eager to see him act

On August 23, 2023, High Court Judge Charlotte Malonda granted Illovo an injunction against prosecution for alleged unfair competition after a CFTC investigation found the company guilty of unfair trading practices.

Later, Illovo Sugar also got another injunction restraining the ministry from effecting a 25 percent sugar price cut and the Director of Public Prosecutions (DPP) from beginning criminal proceedings for alleged violation of Competition and Fair Trading Act.

However, CFTC applied to have the injunction vacated and after hearing the matter in October 2023 the High Court is yet to make a ruling despite indicating that judgement could be delivered within 30 days.

Cdedi said it felt obliged to remind the AG that, as far as the sugar crisis is concerned, consumers are eager to see him acting on the matter.

Reads the letter in part: “Eight months down the line, the low-income consumers that should have benefited from the CFTC determination, had a rude awakening when both Illovo and Salima Sugar companies announced another price hike, the second since the 44 percent devaluation of the kwacha.

“As feared by many, the recent sugar price increase only succeeded in escalating the sugar crisis. To put it bluntly, sugar is now being sold as an illicit drug. Simply put, it is a shame to see productive citizens queuing for hours on end for sugar that never comes.”

Ministry of Justice public relations officer Frank Namangale asked for more time before commenting on the matter.

Consumers are currently buying a one kilogramme packet of sugar at between K3 500 and K5 000 on the parallel market against the normal price of K2300.

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