Zambia Sugar fined a penalty fee of K 76.7 million by Competition and Consumer Protection Commission

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PF deputy elections chairperson Kelvin Bwalya Fube
Kelvin Bwalya Fube
Zambia Sugar has been fined a penalty fee of K76,728,650 of its annual return as of 2013 for price discrimination and unfair pricing in the sugar industry in Zambia.

Competition and Consumer Protection Commission CCPC Board Chairman Kelvin Bwalya Fube said the company has since been ordered formulate competitive prices for both household and and industrial sugar sold on the domestic market.

Mr. Fube says following a protracted 4 year investigation by the commission, it was revealed that Zambia Sugar Plc was also charging household users in the Zambian market 41% higher than what was offered to its export customers in the great lakes region despite the sugar being similar.

And Mr. Fube says the investigation further revealed that industrial sugar users on contract arrangement with Zambia Sugar Plc were categorized as A and B where customers under category A were still charged lower prices for the same industrial sugar compared to others.

Mr. Fube says the investigation found that the company engaged in discrimination between household and industrial users categorized A and B with household sugar being fortified and was established that household users who are Zambian were made to pay 28% more than industrial sugar users under the period of investigation.

The CCPC Board has since warned business involved in abuse of dominance on the market to desist from such conduct.

This according to a statement released by CCPC Public Relations Officer Namukolo Kasumpa.

20 COMMENTS

    • NEXT GO TO THE MILLERS AND COOKING OIL MANUFACTURERS PLEASE! Price of maize was so low this year but we have not seen that same percentage in reduction even after factoring the Zesco tariff increase, the same applies with Cooking Oil -the price of soya reduces by half but the price of oil remained the same!!! This is daylight robbery and you must either arrest the directors or heavily fine them. Well done ba CCPC these guys keep making life in Zambia so expensive when that shouldn’t be the case!

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  1. Is this money going back to the public which was overcharged or is it going to be used for presidential tourism?

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  2. Well done! On a similar note may I ask what the Zambia bureau of standards doing about many fake investors who are producing sub standard products in the country[Gonga ] ,here they call them fong kong products? Just to site one example , I was dismayed to see some roofing sheets that people are buying on Zambian markets , a roofing material that one is able to tear apart with bear hands and when put on the house roof one can never walk up there again or it will broken irerpairebly. Where is quality control on this kind of products?

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  3. Well ccpc. Would you come to the rescue of mtn customers who are mtn jackport winners being paid K1.20 instead of amounts around K200 000 as advertised by mtn through text messages?
    KBF and team (ccpc) must read social medias such as zwd and mtn facebook pages to see how people concerned are reacting. The victims if called to testify can willingly do so.
    It is a fraud by mtn. They are stealing from people. What a shame. Mtn is exposed.
    Citizens be careful , mtn is a fraudster and do not participate in their advertised jackpots or other prized competitions. With mtn everything is possible. Remember some few past mtn competitions where their girlfriends were declared winners.

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  4. ABF group’s sugar operations in Zambia has generated profits of US$123 million since 2007, yet in its own words it has paid “virtually no corporate tax”. Instead, through a complex web of tax avoidance structures, it has deprived Zambia of some US$27 million in tax receipts. All of the company’s manoeuvrings are legal?—?but in a country where two thirds of the population live on less than US$2 a day, they are deeply immoral and completely unjust.

    The lengths that the company has gone to in order to achieve this are quite staggering. It has siphoned a whopping US$83.7million (one third of pre-tax profits) out of Zambia into tax havens including Jersey, Ireland, Mauritius and the Netherlands. This includes shipping a hefty US$50million to Ireland in “purchasing and management fees” since…

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  5. Zambians are good at publishing such storiesstories like this one but making followups is another issue. We dont know whether the company will pay that money or corruption will overshadow it completely.

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  6. From now on its salt in tea, cornflakes, baking, porridge and whatever is not Zambia Sugar related.

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  7. KFB! You should extend and complete investigations into a foreigner who imposed his own price on a Diplomat’s vehicle after hiring it, and giving it away as a prize to someone else without the Diplomat’s consent. Then he used your colleague lawyers to steal such vehicle in abuse of their professions despite the vehicle being on RED BOOK, just because they come from the same tribe with the President of Zambia. Why is the law being appli discrimnately. I am still waiting for him to be fined, criminally prosecuted and deported.

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  8. Ok fine thanx for making a thoroughly investigation and sharing with us the findings. Now I would edge you guys to work extra hard to see to it that they pay that fine , hope you won’t become drunk with corruption that might come up otherwise if you will be drunk then you will sleep forever. And don’t be intimidated by anybody not even by HE. Just do your job deligently. And also investigate millers as well as other business……. that are making us citizens to suffer for their self ……..

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  9. Malandakanwa Zambians will not even benefit from this. 2kg of white sugar is costing K25. That is to much for a poor Zambian

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