Firm challenges commission decision

Goodwill Funeral Services has taken the Competition and Fair Trading Commission (CFTC) to court over a K68 million fine relating to uncompetitive business practices.

The firm is denying any wrongdoing in relation to unfair trading practices and, therefore,does not accept CFTC’s decision to punish them.

In a statement dated February 15 signed by Goodwill Funeral Services chairperson Jovito Peter Chitosi, the company said it was extremely dissatisfied with the determination and instructed its lawyers to file an appeal as it is provided under the Competition and Fair Trading Act.

“The appeal process is underway and, meanwhile, the High Court in Blantyre has issued a stay order against the implementation of the determination pending the outcome of the appeal,” reads the statement in part.

Through the statement,Chitosi informed the firm’s clients that there is no interruption or change in the provision of its services to any of its clients.

“Goodwill will continue to provide the services we are known for and to serve our clients better in accordance to the law and we will continue to update the public on any developments,” he said.

But CFTC spokesperson Innocent Helema in an interview yesterday said the order was obtained without notice of the party, as such, CFTC is not officially aware of the order.

“As of yesterday, we had not been served with the said order. We are thus in the process of obtaining a copy of the same and will apply to set aside. In the meantime, we will comply with the said order,” he said.

The CFTC last week fined Goodwill Funeral Services K68 million. It also fined Nico Life Insurance Company K500 000 for engaging in uncompetitive business practices.

This decision followed an investigation which CFTC launched mid last year into alleged anti-competitive and unfair trading conduct by some players in the provision of funeral services on the market.

The probe followed a complaint submitted to the commission by some funeral service providers in the country, alleging that Goodwill Funeral Services sealed an agreement with Nico Life Insurance Company Limited to exclusively provide funeral services to members of the Medical Aid Society of Malawi (Masm). According to the CFTC, the evidence gathered in the case found that the conduct and decisions by Goodwill and Nico Life resulted in the prevention and distortion of the funeral services market.