Syed Mokhtar Albukhary profited RM2.25 billion from government exemption of import duty on rice by Padiberas Nasional Bhd (Bernas), claims PKR Alor Setar parliamentarian Gooi Hsiao Leung.

Gooi said this equates to an average of RM450 million a year worth of import duty for rice imported by Bernas from 2008 to 2013.

He added in a statement that United States Department of Agriculture statistics estimate that Malaysia’s import of rice for this year will increase by 24 percent  over that of 2013, from 890,000 tonnes of rice to 1.1 million tonnes.

"With the expected yearly increase in rice imports, Syed Mokhtar, who controls Bernas, will continue to reap huge profits as Bernas has the monopoly over rice imports and is exempt from paying import duty on rice," Gooi claimed.

He noted that the government, through a concession agreement, has extended Bernas’ status as the sole national importer status for rice until 2021.

Bernas also produces Super Tempatan 15 percent  rice (ST 15%) for low income and poor households and gets a significant amount of government subsidy of RM800 per tonne of rice produced, Gooi noted.

Gooi said this shocking revelation was made by Agriculture and Agro-Based Industries Minister Ismail Sabri Yaakob ( left ) in a reply to his parliamentary question on the matter.

According to Ismail, Syed Mokhtar has written a private letter to the ministry, giving his personal undertaking that he would guarantee the national interests of padi and rice of the country.

In the letter, Syed Mokhtar had reportedly assured that, during the re-listing process of Bernas, 10 percent shares in its initial public offering (IPO) will be allotted to the government for the National Farmers Association (Nafas) and National Fishermen's Association (Nekmat), Gooi said.

No imposed timeframe for re-listing

Syed Mokhtar also allegedly said he will contribute yearly to Nafas’ and Nekmat’s welfare programmes for five years or until the re-listing exercise of Bernas is completed.

"I say that Syed Mokhtar’s personal private letter to the minister, despite his personal wealth and influence, is a worthless piece of paper," Gooi ( right ) said.

"Syed Mokhtar’s letter is not legally binding nor enforceable on Bernas, as he 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 does not impose any datelines or timeframe for the re-listing of Bernas – when will it be re-listed? in five years? Or 10 years time?" Gooi asked.

Gooi said with no definite dateline for re-listing, Bernas will not be subject to public scrutiny or supervision by Bursa Malaysia through it’s strict rules and procedures on reporting and conduct of the company for an indefinite period of time.

This, he said, would be highly detrimental to the national interest.

He described the manner in which the government allowed Bernas to be de-listed and become a wholly private and individually-owned company, as "unmatched cronyism of the highest order in the country".

"It is a gross breach of public interest to have allowed Syed Mokthar to de-list Bernas on a legally worthless private personal letter, written by Syed Mokhtar to the agriculture minister himself," Gooi added.