GLC contractors can’t be sacked

The National Feedlot Centre may have squandered taxpayers money but the truth is 'we don't have the power' to carry out punitive and remedial measures against the contractor.

COMMENT

At the rate the National Feedlot Centre (NFC) is doing things, there shouldn’t be plans to give them any more money.

In fact the immediate step should be to sack the project partner – Agroscience Industries Sdn Bhd – for weaknesses in management and failing to carry out what it promises to do.

But the sad truth is that sacking the contractor isn’t an option.

The NFC is owned by Agroscience Industries with participation from the Government of Malaysia.

Its business is the development of a planned, integrated and sustainable Malaysian beef industry by setting up a fully integrated livestock farming and beef production facility.

And based on the finding of the Auditor General’s Report, it’s failed to do so.

It has failed to meet its primary objective which was to meet 40% of local need for beef.

But this is the problem with many of our GLCs (government-linked companies). We don’t have the power to carry out punitive and remedial measures such as sacking the contractor.

GLCs, secure for life

Petronas for example is facing the same problem.

Contractors who are awarded contracts are set for life once appointed. So even they fail to perform or do not achieve targets, they can’t be punished.

A good example is the subsidiaries of Kencana and Sapura. Although they failed to deliver projects on time, the parent companies can never be punished.

Instead they are given extended assistance in the form of more projects, more money and subcontractors were paid directly by Petronas.

Getting back to NFC, I’m curious to know what has happened to the other objectives proudly stated on the NFC website.

Among the list of objectives were plans to develop 130 small-scale cattle farmers, who would annually produce 600 cattle to increase productivity to 186,000 cattle a year?

As at March this year, the project’s Entrepreneur Development Programme, with the aim of training 130 satellite farmers, has yet to take off.

The programme’s failure has resulted in only 41.1% or 3,289 cattle being produced last year compared to the targetted 8,000 heads of cattle.

You have ample facilities which remain in use but as usual, are improperly maintained.

Our Auditor-General’s Report mentioned the area where grass was supposed to be grown for animal feed or fodder was still filled with acacia trees.

So, the center has not carried out what it promised to do.

Fulfilling this promise could have been a big factor in deciding to give them money in the first place.

Land withdrawn

Also according to the AG Report, the 2,000ha of land meant for the NFC has now been reduced to 800ha as the Mentri Besar Negeri Sembilan Inc. has taken back their plot.

However, the state government said it would use the plot for livestock activities and food production.

Perhaps this is a more economical way to go.

Establish many independent feedlot centers competing with each other.

Maybe on a smaller scale, we can manage better. Let each state set up its own state level feedlot center partnering with their chosen project delivery partners.

The same objectives can also be charged on them.

Maybe those kampung chaps can do a better job than Agroscience Industries and supply beef to warungs and less fine-diners, the likes of those owned by the scions of Welfare, Family and Community Development Minister Shahrizat Abdul Jalil.

The writer is a former Umno state assemblyman and a FMT columnist.