CAMA threatens to drag Water Boards to court over water tariffs increase

Consumers Association Malawi (CAMA) has threatened to take legal action against water supplier Water Boards if the recent proposed hike for water tariffs get gazetted in the Parliament.

At a press briefing on Tuesday at CAMA offices in Kanjedza, Blantyre  CAMA Executive Director, John Kapito addressed on the two crucial key issues which included; the proposed water tariffs by the Water Boards as well as the increased sugar prices by Illovo Sugar Malawi Plc, which he said is hindering the lives of consumers in the country.

Kapito said it is very unrealistic for Water Boards to propose for water tariffs without proper reasons when the price of water is already high and that majority of the consumers rarely have the access to piped water — which is due to poor operation of the company in the supply of water.

He added that if the Water Boards feel that it is making loses, they shouldn’t punish innocent Malawians because those losses are arising since they lost a big percent of water due to their poor underground pipes, broken pipes which they are failing to maintain.

He also said the utility boards are failing to collect water bills from government agencies, who are owing them huge amount of money that can be used to address the challenges they are currently facing.

“It is very unfortunate that as poor as we are as a country, we are paying a lot of money to access water, which is not the same with majority of our neighbouring countries — whose prices are very fair and water supply is being run smoothly while here we have other areas where people stay for a long period to get water despite being connected to piped water.

“As CAMA, we’ll not tolerate or seat down and watch Water Board abusing Malawians. We are ready for them, we’ve consulted our lawyers to do judicial review if the Parliament gazettes the Bill and we’ll go to court. If they want to increase let them put it at 15 or 20% not 50%,” Kapito said.

On the increase of sugar prices, Kapito believes Illovo Sugar Malawi has lost its direction as it has started exploiting the market instead of acting as a monopoly company by ensuring that consumers are getting better prices and that every time they think of increasing prices they must seek approval from the government.

“Illovo is pro-acted by the government that nobody can import sugar into the country but only them — on the understanding that they will be offering reasonable prices to the consumers and work collectively.

“But, unfortunately, it is not the same and it has turned its back on consumers by making higher prices which Malawians cannot afford and that’s also abuse of market power.”

He further demanded that the sugar prices must come down and warned that if Illovo Sugar Malawi will cling to their prices, he will request the government through the Ministry of Trade to intervene and liberalize the market by allowing the competition to take place and also investigate Illovo of why they are making super normal profits.

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