Harare — BLUE Ribbon Foods chief executive officer Michael Manga has appeared at the Harare Magistrates' Courts on allegations of inflating prices of flour in contravention of the National Incomes and Pricing Commission Act.

Manga (47) who was represented by Mr Innocent Chagonda was on Tuesday released on $1 billion bail by magistrate Mr Archie Wochiunga.

He was remanded to April 14. According to the State, Manga is representing the company by virtue of being the chief executive responsible for formulation and implementation of prices. The price of flour as gazetted by NIPC on February 4 is $600 million per tonne but it is alleged that Blue Ribbon under the leadership of Manga was selling it at between $2 billion and $5 billion per tonne. Prosecutor Mr Tapiwa Kasema alleges that between February 6 and March 5 this year, the firm realised abnormal profits after selling flour at inflated prices.

It is the State's case that on February 6 and 13, Blue Ribbon sold 40 tonnes of flour to Afro Foods at $2 billion per tonne and realised $80 billion instead of $24 billion. The State further alleges that on February 24 and March 5, Blue Ribbon sold 50 more tonnes of flour to the same firm for $5 billion per tonne and realised $250 billion instead of $30 billion.

It is the State's contention that the price increases were effected without the approval of NIPC, which is the regulating authority.