Audit report finds irregular padi proceeds distribution in Ladang Merdeka Project

KUALA LUMPUR - The Auditor-General's Report (LKAN) 2021 found that there were irregular distributions of padi proceeds for the Ladang Merdeka Project worth RM4.36 million, with RM2.2 million of it going to 917 participants who had died.

It said that according to an analysis of the Merdeka Farm Revenue Distribution List and a cross-check with the National Registration Department's myIdentity System, the distribution was made to participant representatives without a letter of administration.

This is one of the findings of the audit conducted at the Kemubu Agricultural Development Authority (Kada) headquarters, which covered the distribution of the Merdeka Farm Project's padi proceeds from 2020 to 2021.

According to the report that was tabled in the Dewan Rakyat today, the occurrence can be attributed to several flaws, including the fact that the agreement has not been revised since 1992, weaknesses in monitoring the padi proceeds distribution period, and participant records that were not updated.

Therefore, LKAN 2021 recommended that Kada review the project agreement with the participants as well as prepare a comprehensive standard operating procedure that includes the issuance of a letter of administration, the padi proceeds distribution method and the naming of heirs.

In addition, the report revealed a total of RM471,996 in padi proceeds have not been distributed to participants at the end of each padi planting season since 2013.

It includes padi proceeds of RM95,503 and RM143,331 at the end of the 2020 and 2021 planting seasons, respectively, as well as the accumulated padi proceeds for the 2013-2019 rice planting seasons amounting to RM233,162 as of Dec 31, 2021.

"The Audit recommends that data for the Merdeka Farm Project participants be maintained in a comprehensive, up-to-date, and systematic manner, along with close monitoring to ensure the orderly distribution of rice proceeds.

"In addition, the method of payment through electronic transfer to the participant's bank account must be improved to ensure the rice proceeds distribution process is done according to the set period," the report said.

Kada introduced the Ladang Merdeka project in 1991 to establish a more systematic estate management of padi fields, as well as to address the issue of poverty and abandoned padi fields by increasing the productivity of rice production.

As of 31 Dec 2021, 16 Ladang Merdeka have been established in Kota Bharu Utara, Pasir Mas, Tumpat, Pasir Puteh, and Kota Bharu Selatan, covering a total area of 737.52 hectares and involving 2,406 participants. - BERNAMA