Opposition questions sale of Bernas to Syed Mokhtar

ARCHIVES 2009

By MT Webmaster On Nov 24, 2009

Written by Chan Kok Leong, The Edge

Opposition members of Parliament have questioned the rationale behind letting one man control the nation’s rice imports. According to Saifuddin Nasution (Machang-PKR), Bernas will be controlled by one person — Tan Sri Syed Mokhtar Al-Bukhary — if more shares are sold to the business magnate.

“We need to know if the government has put in place certain risk mitigation mechanisms,” said Saifuddin in the Parliament lobby today.

“Rice is an important commodity and food staple for Malaysia. Allowing one person to control such a fundamental item can be dangerous,” he added.

According to Saifuddin, Syed Mokhtar, via Tradewinds (M) Bhd and Budaya Generasi (M) Sdn Bhd, currently control more than 87% of Bernas.

He said Tradewinds held 32% while Budaya had more than 55% of Bernas.

Saifuddin said that he was also puzzled how a paddy farmers group such as the Muda Agricultural Development Authority (MADA) and Kemubu Agricultural Development Authority (KADA), which used to have 37% of Bernas, could have pared down its shareholdings.

“According to the shareholding agreements, the first right of refusal should have been given to Bernas before it can be sold to other parties. So we are surprised that their shareholding has been sold.”

The Parti Keadilan Rakyat election strategist said that the government should disclose how many shares these groups still hold and when they had sold their stakes to the Syed Mokhtar-controlled companies.