Bernas, the national rice importer, has issued a legal notice threatening to sue a coalition of rice farmer NGOs known as Padi Rescue for defamation.

The group, whose stated aim is to save the paddy industry, had on Oct 20 delivered a memorandum to Prime Minister Najib Abdul Razak calling for the re-establishment of the National Paddy And Rice Board (LPN) to regulate the national rice industry.

Bernas, which is owned by Syed Mokhtar Al-Bukhary, took over the functions of LPN in 1994, and is now the sole permit holder of rice imports.

The company is seeking damages, as well as the retraction of the statements made by Padi Rescue in the memorandum.

PKR Alor Setar MP Gooi Hsiao Leung (left in photo), who has been assisting the group, said that Bernas’ legal threats are tantamount to "using strong-arm tactics to bully, intimidate and silence rice farmers, millers and other interested parties."

"They want to silence these groups from legitimately scrutinising Bernas' public role in managing the rice industry as mandated by the government.

"They have essentially argued that Bernas – as a commercial private entity driven by profits, is unfit and has failed to look after the welfare and interests of rice farmers and millers,” he said in a statement.

"This is despite it being part of its social obligations mandated by the government vide an agreement the latter had signed with Bernas which is due to expire in 2021.

"Every stakeholder and interested party in the rice industry has a legitimate and public right to call for an end to Bernas' monopoly of the rice trade and for its public functions to be taken over by a national body such as the LPN," he stressed.

According to Gooi, there is nothing defamatory at all in making such a call to the government.

"In fact, not only has this call been long made by those in the rice industry, it has received the support of many backbenchers of both political divides in Parliament for a long time," he noted.

Gooi pointed out that he had also raised this urgent matter in Parliament on Nov 5, reminding the government of their powers under the Bernas agreement.

This refers to the government’s veto right, which would enable it to stop Bernas from further pursuing any legal action against Padi Rescue and all those named in the legal notice, he said.

"During my debate with the Deputy Minister of Agriculture Tajuddin Abdul Rahman (photo), the minister had given his personal assurance in Parliament that he will look into and investigate this matter.

"As such, I will hold the minister to his word, and urge him to announce the government’s decision and stand on this urgent matter in the shortest time possible before the end of this parliament sitting.

"I urge him to act accordingly to protect the interests of the rice farmers and other stakeholders from Bernas' menacing threat to take them to court," he added.