Don’t rely solely on Bernas to stabilise Malaysia’s rice industry, PAC tells Putrajaya 

KUALA LUMPUR, Oct 11 — The government needs to find alternatives that can guarantee the stability of the country’s rice industry, Parliament’s Public Accounts Committee (PAC) said today amid growing concern on the security of the staple grain.

Among its recommendations, the PAC said the government should avoid depending on sole concessionaire Padiberas Nasional Bhd (Bernas) and instead move towards an open market for rice.

PAC vice-chairman Wong Shu Qi said that while the issue does not seem big, it affects the local paddy farmers and their survival.

“For example, the PAC found that as of June 14, 2023, Bernas has yet to channel RM25 million out of RM37 million social obligation funds for 2021.

“Updates on the Padi Rice Subsidy Scheme was not monitored by the Ministry of Agriculture and Food Security hence resulted in untidy payment management of the SSHP by Bernas, and is the cause of a payment worth RM0.73 million being paid to 300 farmers after they have died,” she told a press conference at Parliament this afternoon.

The PAC had recently held an inquiry into the Receipt and Payment Under Social Obligation of Concession Agreement for the National Paddy and Rice Industry Management.

The PAC found that the Agriculture and Food Security Ministry’s key performance indicator report for the year 2021 contradicted reports of Bernas’ machinery supply performance, and that there was no upkeep of the machinery used, resulting in damage.

However, information released by the Auditor-General in its dashboard listed the machinery as having been repaired and is in use now.

“The ministry needs to monitor Bernas’ social obligation fund trust account following terms that have been stipulated in the trust deed.

“The ministry, Bernas and National Registration Department have to immediately integrate and tidy up the farmers’ database in order for the SSHP to be implemented more transparently, efficient and in order,” Wong said, using the Malay abbreviation to refer to the Padi Rice Subsidy Scheme.

In February, similar issues were highlighted in the Auditor-General’s Report 2021 Series 2, whereby the social obligation funds for 2021 had yet to be channelled while SSHP payments were also not made to deceased paddy farmers.