Our investigative reporter on the ground has discovered that consumers in Malawi are being exploited by Cooking Oil manufacturers.
Did you know?
Government of Malawi had removed VAT on oil to protect local industries and the agreement was that companies would pass full benefits to consumers, however the companies did not abide by this.
They only initially decreased the price by 8% instead of 16.5% and recently,they have increased prices by 13% thereby making huge profits for themselves and that is leading to exploit consumers the more.
The alleged companies are sunseed, Cori/Kukoma and ETG parrogate.
Cori Company produces Kukoma and others.
Products of Cori Company.
While Sunseed company produces Sungold and Mulawe oil which is made from sunflower seeds.
Products of Sunseed company
Whereas ETG Parrogate company produces Purola Oil is made from vegetable oil-cotton.
Products of ETG Parrogate company
You can imagine,how much Millions they’re making out of this tax waiver plus their recent price hike.
Meanwhile,Malawi is rated as the 6th poorest country in the world and the majority of people survives below the budget of $6.
Common dwellings of Malawians.
On related development.
Cori company has been receiving numerous public backlashes for their disregard to air pollution at their Kukoma factory in Chirimba, whereby their leftovers of their Production raw materials are dumped in Chirimba river,making the residential areas to be consumed with a bad sticky environment.
Not forgetting the Carborn Fumes absolution.
Our reporter spoke to the Chairperson of Parliament Trade,Industry and Tourism Committee;Hon Simplex Chithyola Banda to enquire on their stand on this issue,this was his response
“Our stand is that they need to cut their prices to reflect the tax reduction govt offered them. It’s unfortunate that companies have taken an advantage to milk the poor masses instead of giving back to Malawi through offering affordable products as they benefit from the govt tax reduction”.
He went further to add
“They don’t have any Justification to maintain the current cooking oil prices. They simply need to reduce them. We visited Kukoma and shared the same with the management and we are waiting for a response in action by reducing the prices.The parliamentary committee on Industry Trade and Tourism will make necessary measures to visit the other mentioned companies to verify if indeed the allegations are true and will take necessary steps to address the same by engaging the management of such companies”.
He later spoke to Mr James Kaphale the Executive Director for Competition and fair trading Commission
“The Competition and Fair Trading Commission is a statutory body created under the Competition and Fair Trading Act to regulate, monitor, control and prevent acts or behaviour which are likely to adversely affect competition and fair trading in Malawi
The Commission is aware that, in 2017, Government removed 16.5% VAT on cooking oil. In response to the removal, manufacturers reduced cooking oil prices by different margins.
Under the Competition and Fair Trading Act, the Commission has no power to regulate or dictate prices or margins. However, the Commission is empowered to take action against any enterprise found engaging in predatory or excessive pricing”.
On the issue of Air Pollution,he said
“We have noted the allegations relating to air pollution and dumping of waste products into Chirimba River. While these allegations border on consumer protection, the Commission is aware that there are other statutory bodies that deal with environmental protection issues.
In this regard, the Commission will collaborate with other relevant agencies to investigate the matter and decisive action will be taken for the protection of consumers and the environment”.
We are hereby urging all relavant governing authorities to take keen interest in this matter.
Most specifically the Ministry of finance,Malawi Revenue Authority(MRA),Consumer association of Malawi and Ministry of Trade,Industry and Tourism.
We can no longer pay a blind eye,while our people are languishing due to man made hardships by some shrewd and greedy corporate enterprises.
The Mutharika’s administration had put in mind the welfare of the people at heart,why sabotaging the government like this?