THE Commerce Commission claims its has found that some hardware companies mark up the price of construction material prices by as much as 34,000 per cent.
Commission chairman Doctor Mahendra Reddy said an investigation into the hardware trade began in April after a request from the Industry and Trade Ministry.
The investigation looked at the imports of goods into Fiji, goods manufactured in Fiji, and the wholesale and retail sector for hardware suppliers
Five key points of the report were highlighted by Dr Reddy implicating traders, accountancy firms and Customs officers.
Dr Reddy said the companies were involved in price fixing and price setting including marking up hardware materials from 15 to 34,000 per cent. Items that were steeply marked up included roofing materials, paint, electrical items and fasteners.
The commission also discovered that the companies did not follow proper accounting practices or the International Accounting Standards but their accounts were still signed off by their auditors.
The investigation also found profit shifting offshore by the companies through the issue of dummy invoices.
Also, the commission found, that sub-standard goods were being imported into the country raising questions on the quality and safety of the buildings in the country.
Hardware traders RC Manubhai said they would issue a statement through their lawyers after studying the report.