Monday, October 21, 2013

Agriculture Dept fares poorly in livestock, rice programmes –AG Report

Posted on October 2, 2013, Wednesday
KUCHING: The Livestock Development Programme managed by the Department of Agriculture (DOA) has been graded “less than satisfactory” in the Auditor-General’s Report 2012 despite spending RM53.73 million from 2009 to 2012 to aid livestock breeders in the state.

The report said that an audit conducted from July to October 2012 revealed the programme utilised 96.1 per cent of its total allocation but its overall management was poor and identified seven weaknesses in its implementation.

A glaring deficiency was the absence of contract agreement for the procurement of livestock. Other weaknesses were incomplete livestock registration records and poor management of the livestock station which could have led to low birth rate but high mortality rate of the cattle.

In reaction to the audit comment, DOA had conducted a workshop to draft the Standard Operating Procedure (SOP) for all processes pertaining to livestock project management and station. The department also initiated some remedial actions including reviewing the implementation strategy for the programme; ensuring the signing of contract agreement before distributing the livestock; proper management of livestock station as well as proper and updating registration records of livestock.

Apart from its livestock programme, DOA’s Paddy Industry Development Programme (PPIP) which also involved Ministry of Modernisation of Agriculture Sarawak as well as Department of Irrigation and Drainage (DID) was also deemed “less than satisfactory” in its overall management. According to the report, PPIP was introduced as a development strategy to increase productivity and production of rice to achieve the state’s target of 70 per cent rice self-sufficiency level.

The report said that under the Ninth Malaysia Plan (9MP), DOA and DID had spent a total of RM235.03 million or 93.1 per cent out of RM252.48 million allocations received from both the state and federal government for PPIP.

However, the audit conducted from June to October 2012 showed that the programme failed to achieve the 70 per cent rice self-sufficiency at the end of 9the Malaysia Plan. The implementation of PPIP was blighted by impractical project design, non-compliance of financial procedures in procurement and payment for weedicides.

DOA also failed to meet the deadline for the construction of Stumbin Paddy Seeds Production and Processing Centre (SPPC) which was part of the programme. Meanwhile, the audit of AG conducted from May to July 2012 also found the overall financial performance of management of Mayang Tea Sdn Bhd (MTSB) “unsatisfactory”.

MTSB which is wholly owned by Sarawak Land Consolidation and Rehabilitation Authority (Salcra) was initially involved in planting, processing and marketing of tea on an area of 182.02 ha. However, since November 2011, MTSB has replaced its tea with oil palm on its former 100 ha of tea plantation.
MTSB had initiated remedial actions to ensure the success in its oil palm undertaking which included collecting and taking actions on the outstanding debts and optimising available resources to generate economic return to the company

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