Malawian regulators fine Airtel for frauding customers

Malawi slaps Rs 19 crore fine on Airtel for frauding customers

Malawi imposed a 2.1-billion-kwacha ($2.6 million) fine on mobile operator Airtel Malawi for engaging in 'unconscionable conduct'

Airtel. Credit: Reuters Photo

Malawian regulators on Wednesday fined the local unit of India's Bharti Airtel the equivalent of around $2.6 million (over Rs 19 crore) for skimping on airtime owed to consumers in one of the world's poorest countries.

The Competition and Fair Trade Commission imposed a 2.1-billion-kwacha ($2.6 million) fine on mobile operator Airtel Malawi for engaging in "unconscionable conduct" in withholding airtime owed as part of a loyalty programme.

Airtel Malawi is part of Bharti Airtel Limited, an Indian multinational that operates in 18 countries across Asia and Africa. The company describes itself as the largest mobile operator in Africa.

The commission's acting executive director Apoche Itimu told a news briefing that the commission launched an investigation into Airtel Malawi on September 16, following several complaints from consumers.

"It was alleged that the Airtel Malawi stopped automatically crediting customer accounts with monthly bonuses" of airtime, she said.

Instead, consumers had to request their free airtime on the 14th of every month. Those who failed to do so lost their bonus.

Itimu said the company made a financial gain of about 2.1 billion kwacha by "engaging in unconscionable conduct in the trade of goods and services".

The commission fined Airtel Malawi the same amount.

Bharti Airtel's annual revenue of $14 billion is almost double the size Malawi's entire economy.

Airtel Malawi did not immediately respond to AFP requests for comment.

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