KUALA LUMPUR: The Auditor-General’s Report (LKAN) 2021 has discovered that there were irregular distributions of padi proceeds for the Ladang Merdeka Project amounting to RM4.36 million. Shockingly, RM2.2 million was distributed to 917 participants who had already passed away. This alarming revelation was made after an analysis of the Merdeka Farm Revenue Distribution List and a cross-check with the National Registration Department’s myIDENTITY System, which disclosed that the distribution was made to participant representatives who lacked a letter of administration.
The LKAN 2021 report uncovered these findings during an audit conducted at the Kemubu Agricultural Development Authority (KADA) headquarters. The audit primarily focused on the distribution of the Merdeka Farm Project’s padi proceeds between 2020 and 2021. The report highlighted several flaws that contributed to this irregularity, including the outdated agreement that has not been revised since 1992, weak monitoring of the padi proceeds distribution period, and outdated participant records.
The report stressed the importance of reviewing the project agreement with the participants as well as suggesting the establishment of a comprehensive standard operating procedure by KADA. This procedure should include the issuance of a letter of administration, a clear padi proceeds distribution method, and proper designation of heirs. By implementing these recommendations, KADA can ensure more transparent and fair distributions in the future.
The LKAN 2021 report also shed light on another concerning fact; a total of RM471,996 in padi proceeds has remained undistributed to participants at the end of each padi planting season since 2013. This includes padi proceeds of RM95,503 and RM143,331 at the end of the 2020 and 2021 planting seasons, respectively. Furthermore, an accumulated amount of RM233,162 dating back to the 2013-2019 rice planting seasons has yet to be distributed as of Dec 31, 2021.
The report further suggested that the maintenance of data for Merdeka Farm Project participants should be improved to ensure it remains comprehensive, up-to-date, and systematic. Additionally, close monitoring is necessary to ensure the orderly distribution of rice proceeds. Furthermore, the report emphasized the need for enhancing the method of payment through electronic transfer to participants’ bank accounts to ensure the rice proceeds distribution process adheres to the designated timeframe.
Introduced in 1991, the Ladang Merdeka project by KADA aimed to establish a more organized management system for padi fields. This initiative also aimed to address issues related to poverty and abandoned padi fields by enhancing rice production productivity. The project has successfully established 16 Ladang Merdeka in Kota Baru Utara, Pasir Mas, Tumpat, Pasir Puteh, and Kota Baru Selatan, covering a total area of 737.52 hectares and involving 2,406 participants. – Bernama
Credit: The Star : News Feed
