PAC calls for review of subsidised diesel distribution system

The Public Accounts Committee on Tuesday called for a review of the system of distributing subsidised diesel to fishermen, and even suggested that the Fisheries Department assume the task now undertaken by the Fisheries Development Authority of Malaysia (LKIM).

PAC chairman Datuk Seri Hasan Arifin said it was necessary to determine whether the distribution of subsidised diesel met the objective to reduce the burden of the people and whether the cost of management was reasonable.

"If the government thinks the subsidy scheme is still necessary, the system of distributing the subsidised diesel should be revamped," he said in a statement in reference to the PAC Report on Smuggling and Misappropriation of Subsidised Diesel tabled in the Dewan Rakyat.

He said the measures implemented in stages to improve the system had failed to check wastage and leakages.

Hasan said the Agriculture and Agro-based Industry Ministry and LKIM would have to identify the individuals involved in the irregularities pertaining to the subsidised fuel and act against them.

The PAC proposed that a mechanism be introduced to label subsidised diesel to check irregularities and the distribution system be changed to ensure that the fuel reached the targeted groups.

"The ministry must streamline the procedures to process and approve subsidised diesel to eligible individuals and companies. Companies which violated regulations often should be blacklisted and denied the quota of diesel reserved for them," said Hasan.

The PAC today tabled its Report on Smuggling and Misappropriation of Subsidised Diesel under the Agriculture and Agro-based Industry Ministry and the Domestic Trade, Cooperatives and Consumerism Ministry.

It had begun the proceedings on the issue on June 19, 2014, to protect public interest after the matter received wide media coverage and drew much reaction from the people.

Hasan said that during the proceedings, the PAC was informed by the Domestic Trade, Cooperatives and Consumerism Ministry that the sale of subsidised diesel had risen 184 per cent, from 3.03 billion litres in 2009 to 8.61 billions litres in 2013.

"The increase did not tally with the demand of the fisheries industry and no explanation was given by the Domestic Trade, Cooperatives and Consumerism Ministry.

"The PAC views this matter seriously because it can lead to leakages involving billions of ringgit of public funds," he said. -- BERNAMA