Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP
An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia's best-known businessman, Tan Sri Syed Mokhtar Al-Bukhary.
The Parliament learnt that Putrajaya accepted a personal letter from the businessman as a guarantee he would look after the national interests of rice in Malaysia.
Putrajaya also waived RM2.25 billion worth of duty on rice imported between 2008 and 2013 by Bernas, according to PKR Alor Star MP Gooi Hsiao Leung.
Gooi said Agriculture and Agro-based Minister Datuk Seri Ismail Sabri Yaakob made this revelation in Parliament in a reply to his question last week.
"The latest figures provided by the United States indicates that Malaysia's rice imports for this year will increase by 24% or 1.1 million tonnes."
"This means that tycoon Tan Sri Syed Mokhtar Al-Bukhary will continue to reap huge profits through his control of Bernas," Gooi said in a statement.
Padiberas Nasional Berhad (Bernas) holds the monopoly on rice imports and is exempt from paying import duty on rice.
Following a concession agreement signed with Putrajaya in 2011, Bernas extended its sole national importer status for rice until 2021.
Gooi said Bernas was a strategic national asset tasked with the responsibility of protecting the interests of rice farmers and consumers.
"It was a gross breach of public interest to have allowed Syed Mokhtar to delist Bernas based on a legally worthless private letter," he said, referring to a letter written by Syed Mokhtar, which was disclosed by Ismail in Parliament on March 23.
In the letter, Syed Mokhtar gave his personal undertaking that he would guarantee the national interests of rice in Malaysia.
In the relisting of Bernas, 10% shares of Bernas IPO will be allotted to Putrajaya for the National Farmers Association (Nafas) and the National Fisherman Association (Nekmat).
Syed Mokhtar also pledged annual contributions to the welfare programmes of Nafas and Nekmat for five years or until the relisting exercise of Bernas was completed.
Pouring cold water on Syed Mokhtar's undertakings, Gooi claimed the letter was not legally enforceable nor binding on Bernas.
"This is because Syed Mokhtar is not a party to the concession agreement signed between Bernas and Putrajaya.
"The letter also does not state any deadline or time frame for the relisting of Bernas. So will it take five years? 10 years?" he said.
Gooi pointed out that with no definite date for relisting, Bernas would not be subject to public scrutiny or the supervision of Bursa Malaysia.
"Putrajaya's actions in the way they have allowed Bernas to be delisted is tantamount to unmatched cronyism," he claimed. – June 15, 2014.
