The Commerce Commission has revealed that it now has documentary evidence to prove how the hardware companies in the country are operating.
Chairman Doctor Mahendra Reddy said they have evidence of some hardware companies involved in profit shifting to off-shore companies.
Doctor Reddy highlighted in the report handed to Trade Minister Aiyaz Sayed-Khaiyum five key issues, that there are exclusive dealings, markups as high as 34,000 percent on certain items like fasteners, paints, tools, electrical appliances, roofing materials, timber and steel which have high to exorbitant markups, violation of accounting practices, profit shifting by larger operators to off-shore companies and importation of sub-standard products.
Dr Reddy said recommendations have been made to the minister, as they await directives.
He said the government had referred the matter to the Commission to look into the practices adopted by the hardware outlets and the retailers for some time.
Sayed Khaiyum said they want to make housing affordable for everyone in the country by having a robust construction industry.
The next step will be taken after Sayed-Khaiyum has analyzed the report.
Story by: Vijay Narayan and Ronald Deo.
