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Government spent over RM2.38 billion to stabilise cooking oil price

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TheMole
Written by TheMole

KUALA LUMPUR — December 9, 2016: The government spent RM2.3 billion from 2013 to last April to keep cooking oil prices stable alhough much of the subsidised commodity was exploited and smuggled out, noted the Public Accounts Committee (PAC).

However since the Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) took over managing the subsidy rationalisation on last November 1, many weaknesses in the system have been addressed.

According to the PAC, enforcement by KPDNKK, Customs and other agencies need to be tightened to reduce the cost of the subsidy borne by the government following misappropriation of the item.

The important thing is the question of enforcement to prevent leakages which had previously forced the government to spend more on the subsidy than was necessary, said PAC chairman Datuk Hasan Arifin.

TheAuditor-General’s Report 2015 Series 2 revealed that there had been several weaknesses which caused the government to spend an additional RM2.92 million on the subsidy.

Hasan described the decision to ask KPDNKK to take over the management of cooking oil as the right move because cooking oil is a basic commodity under the purview of this ministry. — (Condensed report from Malaysian Digest)

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