The Grain Millers Association of Zimbabwe, general manager, Ms Lynette Veremu, has revealed that the association has suspended the price monitoring programme after it was denounced by the the the Competition and Tariff Commission (CTC). The Commission is said to have described the programme as limiting.
In an internal correspondence dated 29 July 2019 Veremu said:
This exercise is deemed by law as a restrictive measure. We later met with them at their offices and answered all their queries.
CTC later wrote a letter on March 5, 2019, requesting for information, which we provided them with on May 5, 2019.
Regrettably, they adjudged our case as not urgent and declared the function of CRTC as per se prohibited.
In light of this hostile treatment we are receiving from CTC, I regret to advise that I have halted the price monitoring programme and the employment contracts for 200 price monitors are terminated.”
The CTC has said the idea was noble but it was in violation of the Competition Act (Chapter 14:28), which gives the commission the mandate to promote and maintain fair competition in all sectors of the economy.
The GMAZ general manager has lamented over the development saying that the absence of price monitors will likely result in an increase in prices of commodities. She also revealed that the programme had been accepted by all stakeholders in the value chain namely the millers, retailers and consumers.
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