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Grain Millers hit back at Competition Commission

by Mandla Ndlovu
13 Oct 2019 at 09:27hrs | Views
The Grain Millers Association of Zimbabwe has hit back at the Competition and Tariff Commission (CTC) over their decision to bar the industry of self regulation and price monitoring program that had been mooted and implemented by GMAZ.

The Grain Millers formally expressed their objection to the CTC decision. In a letter received by the CTC on the 10th of October 2019, GMAZ expressly stated that the CTC as an organ of the state is expected to deliver Administrative Justice that is consistent with section 68 (i) of the constitution.

The industry self regulation program implemented by GMAZ sought to stabilise prices of basic commodities, the Competition and Tariff Commission argued that this program was illegal and would give rise to cartels. The competition and Tarrif Commission in its defence issued a statement castigating the GMAZ price monitoring exercise without offering an alternative solution to help cushion the consumer who also happens to be the Tax payer and funder of the CTC.

GMAZ argues that it is in the public interest to have stable and affordable prices even when competition is non existent. GMAZ went on to concur with the public sentiment that the CTC's administrative decision was unreasonable and works against public interest.

Prices of basic commodities stabilised when GMAZ embarked on the price monitoring exercise and ever since the exercise was outlawed by CTC prices have sky rocketed  beyond the reach of the public.

The issue of prices has seen doctors, teachers and critical sections of the workforce are complaining over prices and resorting to industrial action.
President ED Mnangagwa highlighted the need to review the Competition Act in his State of the Nation Address.

Source - Byo24News