By Selangor Journal Team
SHAH ALAM, Oct 11 — Padiberas Nasional Bhd (Bernas) has failed to make RM25 million in payments to its social obligation fund for 2021, the Public Accounts Committee (PAC) revealed in its latest report.
This includes RM20 million for the national nutrient development fund and RM5 million for the padi information system development fund.
In total, the country’s sole importer of rice only disbursed RM12 million as social obligations that year.
“As of June 14, Bernas has yet to channel the remaining RM25 million out of the RM37 million for its 2021 social obligation fund,” PAC vice-chairman Wong Shu Qi said in a statement today.
As a recommendation to address the issue, it urged the Agriculture and Food Security Ministry’s (MAFS) to consistently monitor Bernas’ trust account responsible for handling the funds.
“This is to ensure the channelling and utilisation of the funds strictly adhere to the set conditions stipulated in the concession agreement and deed of trust.
“MAFS must ensure Bernas channels its obligation funds in time, in line with its agreement,” she said.
Wong added that MAFS must enforce remedies by demanding penalties for the concession company’s failure to abide by its obligations, as set in its concession agreement.
“This includes, and is not limited to, the failure to pay RM25 million into the social obligation fund based on the stipulated time frame,” she said.
Today’s report, titled Receipt and Payment Under Social Obligations of the Concession Agreement for the National Paddy and Rice Industry Management, was based on a PAC proceeding on June 14 this year.
The witnesses who gave their statements include MAFS secretary-general Datuk Lokman Hakim Ali, MAFS Padi Industry Development Division secretary Datuk Azman Mahmood, and Bernas’ Concession Management and Upstream Activities Division head Abdul Rahman Mohd Nasri.
Meanwhile, MAFS’ failure to monitor data updated on the Padi Price Subsidy Scheme (SSHP) has led to disorderly subsidy payments made by Bernas.
As a result, Wong said RM730,000 in SSHP disbursements were made to 300 deceased rice farmers.
In this regard, PAC recommended that MAFS, Bernas, and the National Registration Department integrate and update their database for better transparency and efficiency.
It also urged the government to review possible alternatives to Bernas as the country’s rice importer to ensure the stability of the rice industry and avoid over-reliance on the company.
In turn, this will also lead to a more open rice market in the country.
