Former economy minister Rafizi Ramli has warned that the opening of Madani Mart retail stores by Yayasan Madani raises concerns because it involves collaboration with the Domestic Trade and Cost of Living Ministry, which is also responsible for the Rahmah Sales programme.
Rafizi highlighted that the Yayasan Madani board of trustees comprises Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh; Prime Minister Anwar Ibrahim's political secretary Farhan Fauzi; and Kamil Munim, Anwar's political secretary in his role as finance minister.
He also pointed out that the Madani Mart business concept clearly reflects a government-linked initiative.
“Although Fuziah says it (Madani Mart) does not involve government funds, upon closer scrutiny, she also says this is a strategic collaboration with the ministry and involves Rahmah Sales.
“So, I understand the risks, because Rahmah Sales involves allocations of hundreds of millions of ringgit annually. Businesses compete intensely to become suppliers because when they sell to the government, they get normal prices, possibly even higher.
“But when the goods are sold to the public, each kilogramme (for example) is subsidised by the government.
“So, when Madani Mart is run by the ministry’s deputy minister (Fuziah), who is responsible for Rahmah Sales, there is a significant risk because that strategic collaboration creates potential issues,” he told the media at a Hari Raya Aidilfitri event for the Pandan parliamentary constituency in Kuala Lumpur today.
Yesterday, Malaysiakini reported that Anwar launched the first Madani Mart outlet in Indera Mahkota, Kuantan, Pahang.
A Rahmah Sales programme was also held at the event, coinciding with the opening of the first Madani Mart branch.
Fuziah previously stated that the government provided no capital to open the first Madani Mart outlet.
She also said the plan is to gradually expand the business model to 640 outlets nationwide.
'Unfair to other retailers'
Elaborating, Rafizi said that one worrying scenario would be if Rahmah Sales suppliers are required to supply goods to Madani Mart at low prices as well.
“That would be unfair and raises questionable elements. For instance, if Rahmah Sales is funded by government allocations, it should be sold at as many locations as possible - the more places, the better.
“But if Rahmah Sales is conducted at Madani Mart, it is unfair to other sellers, because the government would be channelling subsidies and allocations to shops owned by Yayasan Madani, which is run by the three PKR leaders.
“So, these are legitimate questions that I think if the people are asking, it would be reasonable for them to do so," the Pandan MP said.
He added that the implementation of Madani Mart must ensure that such elements do not arise, including that Rahmah Sales allocations are not mixed and that suppliers are not required to supply to Madani Mart as well.
“Because running a retail shop with very low selling prices is extremely difficult, as we have to compete with chains like (99) Speedmart. Speedmart buys in bulk at warehouse scale, not just by the carton.
“When they buy at that scale, they can secure very low prices. So, it is unfair to other retail chains or small shops, as they have to purchase at higher prices and operate on thinner margins to sell to the public.
“But if Madani Mart has preferential access to Rahmah Sales suppliers, or if Rahmah Sales must be conducted at Madani Mart, it creates an unfair advantage - especially when these shops are owned and closely linked to PKR,” Rafizi stressed. - Mkini
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