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