The government's move to delist Bernas in a consolidation exercise and then seek relisting on the stock exchange is strange and must be investigated, says Alor Star MP Ghooi Hsiao Leung.
KUALA LUMPUR: A PKR lawmaker will ask the Securities Commission to investigate the proposed delisting of national rice company Padiberas Nasional Berhad (Bernas) and find out the real intention behind the exercise.
On Tuesday, the Deputy Agriculture and Ago-based Minister Tajuddin told the Dewan Rakyat that Bernas was going to undergo a consolidation exercise upon delisting, after which the company would seek to re-list again on the stock exchange.
Alor Star MP Ghooi Hsiao Leung said the statement raised questions on the real intention behind the delisting exercise.
“There is something fishy. Why do you need to delist Bernas before you can consolidate the company? What are you trying to cover up?” he asked.
“Once the company is delisted, it will not be subjected to the stringent regulatory rules of the Securities Commission, thus allowing backdoor dealing to take place, Ghooi told FMT on the sidelines of the Parliament sitting today.
He said the delisting exercise would see the company that monopolised the local rice industry to fall into hand of business tycoon Syed Mokhtar Al-Bukhary.
“It will see the company which is supposed to look after the welfare of the people to be turned into a profit-oriented firm.
“That’s why we have repeatedly urged the government to exercise its ‘golden share’ or rights under the Privatisation Agreement inked in 1996 to veto the delisting exercise, but to no avail,” he said.
Ghooi filed an emergency motion in the Dewan Rakyat to debate the matter today, but speaker Pandikar Amin Mulia rejected the motion saying the government was handling the matter.
The PKR leader said Pandikar obviously did not understand the principle of separation of powers.
“It doesn’t matter whether the government is handling it or not, we as legislators have the right to discuss any issue of public interest,” he said.
Bernas also acts as the buyer of last resort for padi farmers at the guaranteed minimum priced determined by government.
Syed Mokhtar currently holds 72% of Bernas shares through Tradewinds (M) Bhd.
The government has announced that Bernas’ contract for rice distribution has been extended for another 10 years to Jan 10, 2021.
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