.gif)
An investigation by Fiji’s Commerce Commission into the country’s hardware sector has revealed that hardware companies have been marking up retail prices by as much as 34,000 percent.
Commerce Commission chairman Dr Mahendra Reddy has handed over the investigation report into ‘unscrupulous practices’ by manufacturers, suppliers and retailers, to Attorney General Aiyaz Sayed-Khaiyum.
Reddy said there were five issues in particular that stood out.
These were:
- Evidence of price-setting between hardware companies.
- Exorbitant mark-ups of hardware prices ranging from 15 to 20 percent up to 34,000 percent.
- Issues on violation of accounting practices by the company accountants as well as audit firms.
- Profit shifting to off-shore parent companies.
- Importation of sub-standard hardware products into the country.
“We have given some recommendations to the government how to deal with the investigation result and will now await the decision by the government,” he said.
Sayed-Khaiyum at a press conference said the government will go over the findings and make a decision after that.
“I hope the hardware companies will be ashamed by this report which actually affects the people,” he said.
Sayed-Khaiyum said that in order to have a robust economy, there was a need for a robust construction sector.
“This, not just through building hotels but in terms of having a good robust construction industry pertaining to construction of homes and various other renovations to make housing affordable for ordinary citizens in Fiji,” he said.
By Rachna Lal
