By Evarist Baimu Nyaga Mawalla - Home

of each case, but it a fundamental requirement that before a decision is reached a fairopportunity be given or afforded to those to be adversely affecting his interests is makeby any public official or body. I accordingly so hold.Secondly I would hold that the decision of the Assistant Price Commissioner was voidbecause of the wrong exercise of a discretion or rather he failed to observe the correctprocedure outlined by the statute before arriving at a decision.Any statutory body clothed with the power to exercise discretion is required to observethe correct procedure as provided in the governing stature, and failure or non-compliancewith the procedural requirements will invalidate the decision.For example in the case of Re an Application by Bukoba Gymkhana Club63 the HighCourt held that the decision of the Liquor Licensing Board which was based onextraneous matters (i.e. the non-existing racial discrimination) was void, as it was anabuse of th discretion by the said Board. In the case at hand Mr. Chama Matata stated thatthe Assistant Price Commissioner based his decision after paying regard to there mainfactors given under section 12 (1),(a),(b) and (e) of the Regulation of Prices Act, 1973which provide:a).b).c).the commodities and services essential to the community;the need to avoid unduly rapid or frequent variations in prices; andthe need to maintain fair relationship among the incomes of different sectors ofthe community.But those factors is only part (the tip of the iceberg) of what the Assistant PriceCommissioner omitted to consider and that is contained in section 12 (2) (e) of theRegulation of Prices Acr, 1973 and it provides:“To take into account the cost of material (if any) used, the direct and theoverhead costs of providing the service and a margin in relation to theturnover and the capital employed.”From the submissions of Mr. Chama Matata when fixing the prices (whichWas an increase of 27%)the Assistant Price Commissioner only considered.63 (1963) E.A. 478the cost of the material (after a market survey). But according to the law the shouldhave also considered the direct and overhead costs of providing the service (e.g.salaries of the hotel workers) and the profit margin that would accrue to the hotelowners.135