ALOR STAR: Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has warned critics against turning the state as a scapegoat for the current white rice supply shortage crisis.
Sanusi claimed that there is a tendency to pin the blame on the locally produced white rice supply crisis on the state government since Kedah is the nation's biggest rice supplier.
"Lately, there is a tendency whenever there is a failure at the ministry level, they seem to try to find a scapegoat to pin the blame on the state government and this includes with media reports.
"For example reports regarding padi supply control, when there is shortage of locally produced rice and the price hike of imported rice. Since most of the padi is produced in Kedah, so the public attention turned to Kedah.
"It is suggested as if Kedah has failed in supply control of padi and rice, whereas this matter is under the purview of federal government, especially under the Agriculture and Food Security Ministry," he said in a press conference after chairing the state executive council meeting at Wisma Darul Aman here today.
Sanusi was responding to news report on Monday that MACC has uncovered a fraudulent scheme involving a rice supply company in Kedah.
It was reported that the company secured a rice supply contract from a state-owned agriculture firm worth over RM100 million annually approximately seven years ago for rice distribution in Peninsular Malaysia.
It was also reported that, under the contract, the company obtained a bank loan of approximately RM30 million to finance the project several years ago.
However, the company's director had allegedly conspired with a board member of the state-owned company to confirm the purchase and delivery of approximately 28,000 tonnes of rice per year, valued at over RM100 million, but the supply was never made.
It was reported that the company is said to have already received an approximate sum of RM30 million through several transactions despite not making the delivery.
Sanusi lamented that the news report was made without proper facts which created impression as if the incident occurred recently, which resulting in the shortage of locally produced white rice.
Explaining on the issue, Sanusi who was appointed as the 14th Kedah Menteri Besar in May 2020, said on Mac 2, 2016, state-owned Kedah Agro Holdings Bhd (KAHB) had entered a contract manufacturing and supply agreement with Prolink Marketing Sdn Bhd.
Sanusi said based on record, the contract was signed by then KAHB chairman, late Datuk Ahmad Zaini Jaapar who was also former Barisan Nasional's Bukit Kayu Hitam assemblyman, with the presence of Prolink representatives Puvendran Chandran and Kuganeswaran Chandran as witnesses.
"The project involved marketing of rice produced by KAHB in 5kg and 10kg packaging worth RM102,480,000 equivalent to 28,800 metric tonnes.
"The agreement was a contract to supply rice, whereby Prolink supplies rice to KAHB while KAHB then sold the supply to Central Regional Distribution Center Sdn Bhd (CDRC)," he said.
Sanusi added that the sales and purchase transactions had started in November 2016 until November 2017 involving Prolink sales to KAHB amounting to RM54,085,750 and KAHB sales to CRDC amounting to RM54,900,030 with KABH earning a commission worth RM814,280.
"Until February 2018, KAHB has received RM 11,066,400 payment from CRDC and KAHB has paid Prolink RM10,785,000 with a profit margin of RM281,400.
"That leaves CRDC owing KAHB RM43,300,750 while KAHB owing Prolink RM43,833,630, with a pending profit margin of RM532,880," he said.
Sanusi added that during the Auditor-General's Report Action Council meeting held on January 17, 2019 in Cyberjaya, KAHB chief executive officer had informed the meeting that the company has ceased all transaction of rice marketing.
He said based on an advise by the committee, KAHB through its then CEO Zulkifli Ahmad Rashidi has lodged a police report on Mac 13, 2019.
Following the report, he said the Malaysian Anti-Corruption Commission and the Agriculture Ministry's Padi and Rice Regulatory Board have summoned officers concerned to have their statement recorded, while Kedah Menteri Besar Incorporated (MBI) had also carried out a special audit on April 18, 2019 regarding the matter.
"Kedah Agro has received a letter signed by the directors of Prolink, attached with directors' resolution dated January 24, 2019 confirming the cancellation of invoice amounting RM43,300,750 issued to KAHB regarding the rice supplied between December 2016 and December 2017.
"KAHB board meeting on May 27, 2019 has agreed to write off overdue amount from the rice sales and purchase transaction between December 1, 2016 to December 31, 2017.
"Subsequently, the AG's Dashboard Action Committee meeting on February 10, 2020 was informed that the project was not proceeded and the case has been taken over by MACC. KAHB board meeting on December 24, 2019 was informed that the MACC investigations have been completed and the file has been submitted to the Attorney General for next course of action.
"On October 11, 2021, KAHB has been informed that audit issue reported in AG Report 2017 series 2 has been marked as "Resolved" (Green)," he said.
Sanusi added that the case has been resolved whereby out of the RM100 million agreement, only RM54 million was materialised with KABH earning RM800,000 commission.
"The transactions was stopped in 2017. How come something that happened in 2017 affecting the rice supply in 2023? How does that makes any sense?," he asked.
Meanwhile, Sanusi expressed hope that the Agriculture and Food Security Ministry would take stern action against rice millers responsible behind hoarding locally produced rice.
"I have repeatedly said that there is a cartel but they have denied that. Hence, now that they have found there is such thing (rice hoarding), they should act on it," he said.
Sanusi added that there are 67 registered rice millers in Kedah with 58 of them are still active.
