The High Court Commercial Division has granted a stay order to Illovo Sugar Malawi, stopping the Competition and Fair Trading Commission (CFTC) from effecting its determination to reduce sugar prices pending appeal.
The stay follows a determination by CFTC on August 23 this year, when it faulted Illovo Sugar Malawi for hiking sugar prices in October last year.
In its determination, CFTC resolved to issue an advisory note to the Ministry of Trade and Industry, as a policy holder, to compel Illovo to reduce sugar prices, taking into account that the company does not have a mandate to control smuggling using prices or other means.
CFTC also recommended that the Director of Public Prosecutions (DPP) prosecute Illovo over the matter for allegedly violating Section 43(1)(g) of the Competition and Fair Trading Act.
But, according to a stay order which The Daily Times has seen, Judge Charlotte Wezi Malonda of the High Court has ordered that the determination be stayed, pending the hearing/ determination of the appeal by the appellant.
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“Upon reading the application filed herein and the sworn statement of Maureen Kachingwe in support of the application for stay and upon reading the skeleton arguments filed herewith; and upon being satisfied that this is a proper case in which an order for stay pending appeal should be granted;
“It is hereby ordered that the determination of the commission/ respondent dated the 23rd August 2023 be and is hereby stayed pending the hearing/determination of the appeal by the appellant,” the court says.
The court has further ordered that Illovo file an application with notice for stay within 21 days.
Last week, Ministry of Trade spokesperson Mayeso Msokera told The Daily Times that the ministry was reviewing the advisory opinion by CFTC.
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“The ministry received an advisory opinion from CFTC and it is under review. Very soon, a determination will be made public by the ministry,” Msokera said.
In its determination, CFTC also resolved that it would issue an advisory note to the Ministry of Trade and Industry to ensure that the supply of essential commodities such as sugar is not shielded from import competition in situations where domestic beneficiaries under the Control of Goods Act are abusing their position or engaging in unfair trading practices.
Last week, Consumers Association of Malawi Executive Director John Kapito backed CFTC’s decisions.
