CDEDI calls for parliamentary inquiry into sugar production, pricing

Center for Democracy and Economic Development Initiatives (CDEDI) has written the Public Accounts Committee (PAC) of Parliament and the Parliamentary Committee on Trade and Industry requesting them to institute a public inquiry on sugar production and pricing in the country.

 The call has come following a meeting the ministry of trade and industry held on June 5 this year with selected stakeholders in the sugar industry in reaction to a leaked document from Illovo Sugar Company.

Speaking at a Press Briefing on Tuesday, CDEDI Executive Director Sylvester Namiwa, the correspondence from Illovo caused an unpleasant reaction from citizens and showed that Malawi is sitting on a time bomb in relation to sugar pricing and production.

CDEDI says it carried a mini survey to check for the prices of sugar in neighboring countries and found that Malawians are paying exorbitant prices for sugar.

In light of this CDEDI has written the two parliamentary committees to exercise their constitutional powers and help Malawians understand the current situation.

Further to this the organization is apprehensive that such an inquiry will shed light on whether the tax regime prevailing in the sugar industry was designed in the interest of Malawians.

“Similarly, through the public inquiry, CDEDI believes Malawians will know whether the tax regime prevailing in the sugar industry was designed in their interest,” said Namiwa.

CDEDI is also reminding the public to demand transparency and accountability from the Malawi Revenue Authority MRA, ministry of finance and other relevant government authorities by justifying the current tax arrangement and motivation behind the same.

CDEDI has assured Malawians that it will not give up on the issue until prices of sugar fall.

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