KUALA LUMPUR: A recently-scrapped rice subsidy programme by the Ministry of Agriculture and Agro-based Industry (MoA) did not reach the targeted low-income earners, according to the third and final series of Auditor General’s Report 2014.
The rice was instead bought by foreigners, restaurant and food stalls, as well as to feed pets, in addition to actually being more expensive than its control price in Sarawak, said the report, which was released today.
“An audit carried out between March and July 2015 revealed that the achievement of one of the main objectives of the programme which is to benefit the target group to purchase rice at cheaper prices has not been fully achieved.
“It was due to the total quota issued specifically for the target group, subsidised rice was purchased by foreigners, restaurant and food stalls and to feed pets which resulted in the unavailability of subsidised rice in the retail market.”
MoA announced on Nov 1 that it had abolished the subsidy for the Super Tempatan 15 per cent broken (ST15) grade rice following much leakages in the programme.
The programme introduced in 2008 was meant to cover losses incurred by Malaysia’s sole rice distributor Padiberas Nasional Bhd (Bernas) to procure and distribute ST15 and S15 rice.
Some RM3.34 billion was allocated to finance the programme from 2008 to 2014 through 1,654 contracts signed between the Government and Bernas.