PETALING JAYA: The government has forgone the collection of RM2.25 billion worth of import duties for rice imported by national rice company Padiberas Nasional Bhd (Bernas) from 2008 to 2013, said an opposition lawmaker.

Alor Setar MP Gooi Hsiao Leung said Agriculture and Agro-based Minister Datuk Seri Ismail Sabri Yaakob made the disclosure in the Dewan Rakyat in reply to his question on the matter last week.

“The United States Department of Agriculture estimates that Malaysia’s import of rice will increase by 24% from 890,000 tonnes in 2013 to 1.1 million tonnes in 2014.

“With the expected increase in rice imports, Syed Mokhtar Al-bukhary who controls Bernas will continue to reap huge profits as Bernas has the monopoly over rice imports and is exempted from paying import duty on rice,” Gooi said in a statement yesterday.

Gooi, in his statement, also described Syed Mokhtar’s personal “letter of guarantee” to the minister on the privatisation of Bernas as a worthless piece of paper as it is not legally binding or enforceable on the company.

This, the PKR MP said, is because Syed Mokhtar is not a party to the concession agreement signed between Bernas and the government to carry out its social responsibilities imposed by the government until 2021.

The letter also did not specify the time frame for the re-listing of Bernas, he noted.

“With no definite dateline for relisting, Bernas will not be subject to public scrutiny or supervision of Bursa Malaysia through its strict rules and procedures on reporting and conduct of the company for an indefinite period of time — which is highly detrimental to our national interests,” he said.

Gooi said that in response to his parliamentary question last week for the full and complete disclosure of Syed Mokhtar’s letter to Ismail Sabri, the minister answered that the tycoon had given his personal undertaking on Bernas, including a guarantee on the national interests of padi and rice in the country.

Also, in the relisting process of Bernas, 10% of the shares will be allotted to the government for Nafas (National Farmers’ Association) and Nekmat (National Fishermen’s Association).

The minister also disclosed that Syed Mokhtar had agreed to contribute yearly to the welfare programmes of Nafas and Nekmat for five years or until the relisting exercise of Bernas is completed.

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This article first appeared in The Edge Financial Daily, on June 16, 2014.