Pac Urges Govt To Find Alternatives To Bernas To Ensure Rice Stability

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The Public Accounts Committee (PAC) has urged the government to study alternatives to Padiberas Nasional Bhd (Bernas) to guarantee the nation’s rice stability.
This was in an effort to avoid an over-reliance on Malaysia's concession agreement with the rice supplier and push towards an open market.
This was listed as one of the eight recommendations in a report published by the PAC today titled ‘Receipt and Payment Under Social Obligations of Concession Agreement for the National Paddy and Rice Industry under the Agriculture and Food Security Ministry’.
At a press conference today, PAC vice-chairperson Wong Shu Qi highlighted several discrepancies in Bernas’ conduct which led to the committee giving eight recommendations to the government.
Apart from finding alternatives to Bernas, Wong (above) also recommended that the Agriculture and Food Security Ministry monitor its social obligation funds in a timely manner and in accordance with its concession agreement.
This comes after the PAC found that as of June 14 this year, Bernas had yet to disburse RM25 million out of RM37 million for its social obligation fund for the year 2021.
Social obligations
In March, Deputy Agriculture and Food Security Minister Chan Foong Hin said the government could not unilaterally cancel any contract to import rice into the country because it needs to consider the social obligations Bernas had agreed to implement.
The obligations include managing the country’s rice buffer stock, maintaining its role as the last padi purchaser at a minimum price, and managing padi price subsidy payments as well as the scheme for millers, Bumiputera wholesalers and farmers’ cooperatives.
PAC’s report also identified that the rice supplier’s Padi Price Subsidy Scheme (SSHP) database was not sufficiently updated, resulting in the payment of a total of RM0.73 million to 300 rice farmers who had died.
The committee recommended that the ministry, Bernas and the National Registration Department integrate systems and update its database to ensure that SSHP payments can be implemented in a more transparent, efficient and orderly manner.
Bernas’ concession agreement of 35 years first began in 1996, which was supposed to end in 2011 and has been extended twice and will now end in 2031.
The concession costs of its third agreement with the government began on Jan 11, 2021, and cost RM3.216 billion.
Wong said that PAC’s proceeding was conducted on June 14 this year.
HRD Corp proceedings
Separately, Wong announced that the PAC will begin proceedings on the Human Resource Development Corp (HRD Corp) on Oct 23.
HRD Corp chief executive Shahul Dawood
“Among the witnesses who will be called are Human Resources Ministry control officer Amran Ahmad and HRD Corp chief executive Shahul Dawood.“The purpose of PAC starting this proceeding is to study and examine the management and effectiveness of HRD Corp's programmes, to ensure that government funds and allocations are managed efficiently and effectively in accordance with established guidelines and procedures.
“At the same time, the programmes and training provided will also be scrutinised to ensure that the funds and allocations given for the purpose of strengthening the country's competence and skilled manpower coincide with the needs of employers as well as current industry and economic trends,” she said.
HRD Corp came under fire earlier this year when a news report alleged that the Finance Ministry discovered discrepancies in a contract procurement process valued between RM53 million to RM159.47 million a year involving a key official in the corporation.
Emergency motion
Meanwhile, Sungai Petani MP Dr Mohammed Taufiq Johari filed an emergency motion to debate the issue of the hoarding of local white rice following the authorities' seizure of a rice factory in Kedah yesterday.
Sungai Petani MP Dr Mohammed Taufiq JohariSpeaking in a press conference in Parliament today, Taufiq said his coalition had filed the motion under Rule 18 (1).
He said the issue needs to be debated since the lack of rice supply in the local market has lasted for months.
"This has been proven by uncovering hidden rice supply. This issue needs to be expedited because the rice hoarding that was revealed needs a full explanation from the authorities and needs to be debated in Parliament.
"We need to investigate who is responsible for this crime and this issue is of public interest because it affects our staple food," he said.
Yesterday, a rice factory in Kedah was seized after being suspected of hiding 180 metric tonnes of local white rice estimated to be worth RM405,000, through the Local White Rice Operation (OP BPT).
Deputy Agriculture and Food Security Minister Chan Foong Hin said an inspection at the factory found five percent Local Super Special Grade rice (SST5) or local white rice (BPT) in jumbo containers totalling 180 metric tonnes was hidden in a warehouse that was not specified in the licence.
Commenting further, Taufiq described the crime committed by the parties involved as a big betrayal.
"It is my responsibility to bring up this issue because this issue is very close to my heart and has caused the loss of the people of Kedah the betrayal committed by the perpetrators," he said.
Besides Taufiq, Batu MP M Prabakaran, Batu Pahat MP Onn Abu Bakar, and Miri MP Chiew Choon Man also called for the motion to be debated. - Mkini

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