Competition body hearing wholesalers complaint against NAMILCO

Sixteen wholesale buyers of flour have reported the National Milling Company (NAMILCO) to the Competition Commission for allegedly giving preferential prices to some clients, which they say is in contravention of the Competition and Fair Trading Act.

The buyers sought an investigation of NAMILCO and the Commission last month summoned them to a hearing on the matter. NAMILCO General Manager Bert Sukhai, when contacted, told Stabroek News that he could not comment on the allegations, saying that it would be sub-judice since the matter was before the Commission. He noted that NAMILCO’s lawyers are handling the complaints and would respond to them.

In August, attorney Winston Murray wrote the Commission on behalf of the group of wholesale buyers, charging that notwithstanding the existence of a price list, “preferred and chosen wholesale purchasers” were being sold flour at rates below the list price. NAMILCO enjoys a monopoly on the manufacture of flour, which it distributes through wholesalers, he noted. He added that he was advised that there had been a wholesale price list for the various types of flour produced and sold as well as for the different  sizes of packages for the same type of flour.

“Needless to say, such a situation would clearly jeopardise the viability of the flour business of disadvantaged persons,” Murray explained. As a result, on behalf of the group of buyers he requested an investigation of NAMILCO’s conduct to determine whether it is engaging in business practices in contravention of the Competition and Fair Trading Act 2006.

He added, “I am forced to take this course of action since a meeting I had with the Honorable [Commerce] Minister Manniram Prashad was not very productive and I have been unable to secure a meeting with the General Manager of [NAMILCO] to resolve the matter.” Further, he said, “In the meantime persons desirous of pursuing active businesses are wrongly denied the opportunity to do so and require the urgent intervention of the Commission.”

Earlier in the year, the Commission said it was open for business and ready to receive complaints on unfair trading practices. Where they believe that they have been treated unfairly in the market place, any individual, entity, organization or association may make a complaint to the Commission, which is responsible for ordering investigations in relation to the conduct of business to determine whether any enterprise is engaging in unlawful practices. Further, according to the Competition and Fair Trading Act, it has the power to, among other things, declare certain business practices to be abuses of dominant position and to prohibit discrimination or preferences in prices or other related matters.

Private Sector Commission Chairman Ramesh Dookhoo heads the Competition Commission. In addition to Dookhoo, consumer   representative Patrick Dial, bar association representative Adrian Anamayah, and public sector representative Keith Burrowes are also members of the Commission.

A sum of $14.8 million was earmarked in this year’s budget for the establishment of the Commission’s Secretariat.

Last year, the commissioners secured a $143 million grant from the Caribbean Development Bank’s CART Fund programme, to provide expert advice and technical capacity building to the commission, its secretariat and the judiciary.