"As soon as we knew there was mis-selling, we took action, " he told the MPs.
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The reported detention follows a warning on Saturday by Mr Mugabe's spokesman of state action against journalists for "mis-reporting" on the cholera outbreak.
BBC: Botswana denies Mugabe coup claim
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But MP James Plaskitt contrasted the fines handed out to firms found guilty of mis-selling by the FSA and the action taken by the Office of Fair Trading (OFT) over price fixing.
BBC: NEWS | Business | Watchdog grilled over mis-selling