Coronavirus: Authorities shut down factories making fake medical masks


Sarwat Nasir
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Authorities in Ajman shut down two unlicensed factories and shops on Sunday for making and selling medical face masks that do not meet local health and safety standards.

The businesses were discovered during random inspections by the emirate's Department of Economic Development. Inspectors found that the businesses were exploiting the high demand for masks, caused by the coronavirus outbreak, to gain illicit profit.

The facilities were closed and the masks were seized by the department of control and consumer protection.

Two factories and shops in Ajman were shut down for selling fake medical masks. Courtesy: Ajman Department of Economic Development
Two factories and shops in Ajman were shut down for selling fake medical masks. Courtesy: Ajman Department of Economic Development

“The DED will take whatever measures necessary to combat the use of the current situation by some people. Inspection teams are ready to arrest offenders and work round the clock,” said Ahmed Al Blooshi, director of the department.

The masks produced by the unlicensed factory did not meet UAE-approved specifications and standards.

The department said people should only buy masks from pharmacies to ensure they meet the authority’s standards. People are urged not to buy masks that do not include manufacturing details on the label, to protect themselves from commercial fraud.

The department carried out 1,890 inspections across the emirate over the past 10 days searching for any breaches related to the coronavirus outbreak.

Inspectors found infractions against 90 establishment including illegally increasing the price of vegetables, offering delivery services without permits and failure to observe gatherings of support staff in offices.

“Inspection campaigns also included the closure of 36 non-compliant establishments, including hypermarkets, pharmacies, cafes, hair salons, gyms, billiard clubs, foodstuff shops, fruit and vegetable trading stores and others,” said Mr Al Blooshi.

Consumers can file complaints on the direct line of Ajman Government Contact Centre, on 80070.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

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