KPDNKK told to get rid of companies profiteering through KR1M

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has instructed the Domestic Trade, Cooperatives and Consumerism Ministry to immediately terminate the contracts of companies appointed to run 1 Malaysia People's Shops (KR1M) that are selling products at above market prices.

He said this should not have happened because the government was providing allocations to these companies to ensure the products are sold at lower prices.

"Datuk Seri Hamzah Zainudin (the minister) will sack the errant companies and appoint new ones that show the proper responsibility to the people," he said when opening Kuala Langat UMNO's delegates conference in Pulau Carey here today.

Ahmad Zahid said he had received complaints that a certain company that was given the opportunity to run KR1M outlets was engaged in profiteering.

Ahmad Zahid, who is also Home Minsiter, said the "middlemen" role was a factor in the hike of prices of food products on the country.

He said there were irresponsible middlemen whose sole aim was to make extraordinary profits at the expense of consumers.

The Deputy Prime Minister also asked the same ministry and the Agriculture and Agro-based Industry Ministry to address the problem.

"The price of mackarel going up as high as RM28 (a kilogramme)? I asked fishermen what was the landing price... just RM8 a kilo. So why RM28 (a kilo), maybe in Banting RM14, KL (Kuala Lumpur) RM18, why in other places RM28. Why is there a difference of RM20?," he asked.

Saying that there could be weaknesses in the supply chain with middlemen pocketing extraordinary profits,, Ahmad Zahid said such matters must be exposed and overcome.

-- BERNAMA