CEO Morning Brief

Govt Has Not Revoked Bernas' Concession Agreement — Ministry

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Publish date: Fri, 13 Oct 2023, 09:04 AM
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TheEdge CEO Morning Brief

PUTRAJAYA (Oct 12): The government has not withdrawn or revoked the concession agreement with Padiberas Nasional Bhd (Bernas) that was signed for a 10-year period from Jan 11, 2021 till Jan 10, 2031, the Agriculture and Food Security Ministry said in a statement on Thursday.

In refuting claims which went viral on Whatsapp that the concession agreement had been revoked, the ministry said a complaint has been lodged with the Malaysian Communications and Multimedia Commission (MCMC) for a thorough investigation to be carried out.

"The ministry advises the public not to believe the fake message and to stop the spread of the misleading information," said the statement.

On Dec 3, 2020, the government announced the extension of Bernas’ concession for rice distribution in the country for another 10 years beginning from Jan 11, 2021, after the earlier agreement expired a day earlier.

With the extension, the concession was improved with several new terms which included an increase in the number of social obligations from five to 10, which included managing a stockpile, purchasing padi at a guaranteed minimum price (GMP) decided by the government, acting as the buyer of last resort as well as managing the disbursement of subsidies to farmers.

On claims over the lack of enforcement, the ministry said the Local White Rice Integrated Operation (OP BPT) was ongoing and so far two factories have been sealed and were being investigated under the Control of Padi and Rice Act 1994 (Act 522).

The operation first conducted on Aug 16 was led by Deputy Minister of Agriculture and Food Security Datuk Chan Foong Hin.

The operation which focused on inspecting and enforcing regulations on commercial rice mills and rice wholesalers was held in collaboration with various agencies including the enforcement division of the Ministry of Domestic Trade and Cost of Living, and the police.

Source: TheEdge - 13 Oct 2023

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