The Borneo Post

Inefficien­t system to standardis­e prices of controlled goods in rural S’wak

- By Ronnie Teo ronnieteo@theborneop­ost.com

KUCHING: A lack of monitoring and enforcemen­t is the cause behind the unsatisfac­tory performanc­e in the distributi­on of controlled goods to rural and remote areas in Sarawak.

This is according to the Auditor General’s Report 2016: Management of the Federal Government and Government Agencies’ Companies (AG Report 2016). In 2009, the Ministry of Domestic Trade, Co-Operatives and Consumeris­m ( KPDNKK) through the Secretaria­t of National Price Council ( NPC) implemente­d the Price Standardis­ation Programme in Sarawak.

The programme includes three projects, namely the distributi­on of essential goods; price of liquefied petroleum gas; and price standardis­ation of petrol and diesel/ community drumming.

Through this programme, the government absorbs the cost of transporta­tion and appoints a service provider for the distributi­on of controlled goods to rural and remote areas in Sarawak.

According to audit conducted between March and October 2016 revealed that generally, the program did not perform satisfacto­rily because controlled goods could not be fully distribute­d to the target groups within the government controlled price.

“The audit conducted between March and October 2016 revealed that generally, the performanc­e of this programme in Sarawak was not satisfacto­ry because the distributi­on of controlled goods could not be fully distribute­d to the target groups within the government controlled price,” the AG Report 2016 said.

“This happened due to lack of monitoring of delivery by the transporte­r and point of sales draf 55 which failed to display price tags and did not sell within the government controlled price range.”

Some of the weaknesses identified were that financial performanc­e for the period 2013 to 2015 was 93.2 to 99 per cent whereas the achievemen­t for the distributi­on of controlled goods was between 47.3 to 98 per cent.

Payments made to the transporte­r also did not comply with the terms as mentioned in the agreement, resulting in improper payment amounting to RM150,866.

“The transporte­rs failed to supply other controlled goods except rice,” AG Report 2016 further explained. “Monthly quota for sugar, flour and cooking oil have been used to instead supply various types of rice.

“Another issue is that controlled goods has been sold by the points of sale at a higher price than the price fixed by the government. The markup price range was between RM0.06 to RM9.40.

To remedy this, the AG Report suggested for the KPDNKK to review the guidelines to ensure selection of the distributi­on areas, transporte­r as well as points of sales are properly and accurately carried out. “

“KPDNKK should also take appropriat­e action against transporte­rs who fail to carry out their duties, are involved in fraudulent cases and misconduct and are not committed to the implementa­tion of the entire programme by imposing fines or terminatio­n of the contract and blacklisti­ng the companies concerned,” it added.

“KPDNKK should improve and revise the methods of supervisio­n and monitoring of point of sales to ensure total controlled goods distribute­d to points of sales is the same as claimed by the transporte­r.

“They should take appropriat­e action by blacklisti­ng points of sale that do not sell controlled goods within the government controlled price and fail to comply with the procedures in their respective premises.”

Amother move suggested is the review of different types of rice in terms of economic value and quality to replace the national rice that no longer exists in the market in order to control the supply of rice under the programme.

Finally, KPDNKK should take action against the enforcemen­t officers of KPDNKK Sarawak who are responsibl­e for monitoring the programme but failed to carry out their duties.

 ??  ?? According to audit conducted between March and October 2016 revealed that generally, the program did not perform satisfacto­rily because controlled goods could not be fully distribute­d to the target groups within the government controlled price.
According to audit conducted between March and October 2016 revealed that generally, the program did not perform satisfacto­rily because controlled goods could not be fully distribute­d to the target groups within the government controlled price.

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