CDEDI REGRETS SETTING ILLOVO SUGAR UNDER COURT INJUNCTION

 

C

entre for Democracy and Economic Development Initiatives (CDEDI) regrets its prior action on pinning down Illovo sugar (Malawi) public limited company against judicial injunction in 2023, as they have returned again seeking the judiciary to remove the imposed measures against the Illovo sugar Malawi plc which was granted on 23 August.

In June 2023 CDEDI worked tirelessly summoning the Judiciary to take an action on the raised matters concerning high prices of sugar, in the press briefing which was held in Lilongwe last year CDEDI claimed that the prices of sugar were too high for the Malawian to afford it, and the CDEDI Executive Director Slyvester Nawima said he wrote the Public Accounts Committee(PAC) of Parliament and the Parliamentary Committee on Trade and Industry to immediately conduct a public interrogation on sugar production and pricing. In the same month of June CDEDI demanded the Malawi government to take an immediate action on the issue which was brought before it, after finding out that the company sold the commodity at a higher price within Malawi than what is exported, they also demanded for the fair prices of sugar in Malawi as they compared the prices of sugar in Malawi and other neighboring countries saying that Malawians are paying a lot unnecessarily comparing to the other sister countries.

In response to the concern the government took an action against the pricing of sugar through the action Judiciary, and Illovo sugar Malawi plc obtained two court orders against the state of pricing and retraining the Competition and Fair Trading Commission (CFTC) and the Ministry of Trade on sugar pricing. In August 2023 High Court Judge Charlotte Malonda allotted Illovo sugar Malawi plc an injunction against pursuance for averred unfair competition, this was after CFTC found Malawi Illovo sugar company guilty of unjust trading practices.

And the latter injunction was obtained later on which was to retrain the Ministry of Trade from effecting a 25% sugar price cut and the Director of Public Prosecutions (DPP) from beginning the proceedings for averred violation of Competition and Fair Trade Act.

Now looking from the perspective of how scarce is sugar in Malawi, CDEDI has wrote a letter asking the Judicature, Attorney General Thabo Chakaka Nyirenda to act on the two orders that Illovo sugar obtained last year against the state of pricing. CDEDI has proposed the Attorney General to vacate the court orders because this will reduce the suffering of Malawians that they are enduring due to the scarcity of sugar that has led to hiking up of sugar prices on the market. CDEDI has said that they expect the judiciary to take this into consideration in reducing sugar pricing case between them who stand for the voiceless Malawians and Illovo Malawi.

Upon meeting with the Judiciary officials earlier this month Nawima and her Assistant Florence Msekandiana to discuss the case, and after the discourse, Nawima reported that they had a fruitful engagement close to two hours heart to heart discussion on three matters. He said the first thing the judiciary officials promised them that they will follow up the issue, where Nawima commended that this brings hope that soon or later they are going to get the much-awaited judgement on sugar pricing.

Secondly, he disclosed that the courts were happy that they brought the issue to them, and that the chief justice has extended invitation to Malawians that they should report such cases to cases as the judiciary is there is help and serve the interest of the public.

“They are up and willing to account for their actions, and failure to act as per wording and dictates of section 12 of the republican constitution,” lastly Nawima disclosed. He encouraged the Malawians that the message they could take home is that the judiciary officials had taken note of their concerns and that they have promised them that they would follow up and the hope is there that soon or later the Malawians would get a ruling on that matter.

Nawima added that he believes that vacating the injunction could avail stabilize sugar prices as most of the Malawians are struggling to access the good due to the usurious prices of the commodity.

And this reflects to a question which Nawima asked last year, “if sugar is an affordable basic commodity in neighboring countries, why should it be beyond the reach of the majority of Malawians who equally deserve a decent living? Let’s join hands to pull down the price of sugar.”

[Sugar prices in Mzuzu: Illovo(left) @K4400, Middle @K4200 and Mozambique(right) @K4200]

(Meta post: Insights from concerned citizen)

 

                                                                                         (Meta post: Insights from concerned citizen)

Currently the commodity that was supposed to be utilized here in Malawi by Malawians is being exported to other sister countries leaving home people struggling in accessing of it, filling up shops and stores in another jurisdiction whilst leaving residential home store’s shelves only covered with dust perpetuating illegal exorbitant importation of foreign sugar. Mozambiquan sugar arriving in the country’s market is being sold at a range of K3600 and K4200 (1-kilogram pack) in different parts of Malawi with varying costs whilst Illovo sugar (Malawi) at K4500, 1 kilogram.

 

(Game of one-side exchange, grow home, process home and feed all somewhere else)