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2016 AG's Report: PPH performance falls short in Sarawak

KUALA LUMPUR: The performance of the Price Standardisation Programme (PPH) in Sarawak has not been satisfactory, the overall audit on the Domestic Trade, Co-operatives and Consumerism Ministry (KPDNKK) has revealed.
According to the 2016 Auditor General’s Report, controlled items (BKP) were not fully distributed to target groups within the government’s controlled price system.
The report identified a lack of monitoring on delivery by the Service Providers (transporters) and Sales Centres/Points of Sales (POS) as the main problem.
“The transporters and POS failed to display price tags and did not sell within the government-controlled price range,” the report read.
Some of the weaknesses identified are as follows; “Financial performance for the period 2013 to 2015 was 93.2 per cent to 99 per cent, whereas the achievement for distribution of BKP was between 47.3 per cent to 98.0 per cent.
“Payments made to transporters did not comply with the terms as mentioned in the agreement, resulting in improper payment amounting to RM150,866.
“Transporters failed to supply other BKP except rice. Monthly quota for sugar, flour and cooking oil was used to instead supply various types of rice, and BKP was sold by the POS at a higher price than the price fixed by the government.
“The marked-up price range was between RM0.06 to RM9.40,” the report added.
The PPH was introduced in 2009 by KPDNKK through the Secretariat of National Price Council.
The PPH includes three projects, namely the Distribution of Essential Goods, the Price of Liquefied Petroleum Gas and the Price Standardisation of petrol and diesel/Community Drumming.
Through the PPH, the government absorbs the cost of transportation and appoints a transporter for the distribution of BKP to rural and remote areas in Sarawak.
Products are sold to the community through the POS within government-controlled prices.
Appointed POS are premises recommended by transporters which are approved by KPDNKK.
The ministry had also issued guidelines for the selection of transporters for the implementation of PPH.

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