Sand monopoly, the cronies are at it again
WikiSabah
By Datuk Yong Teck Lee
KOTA KINABALU: The cronies are at it again. After failing to monopolise the scrap metal business three years ago, cronies have again reared their ugly heads to grab the extraction and supply of sand to the construction industry.
Using the same lame excuse of lax enforcement against “thefts of scrap metal”, the political masters have now come up with thefts of sand as the excuse to put all the rights to sand extraction in the hands of Sabah Economic Development Corporation (SEDCO).
This is a repeat of the failed attempt in 2008 to let Superpanel Sdn. Bhd., a subsidiary company of the Sabah Housing and Town Development Board (LPPB), monopolise the scrap metal business.
At the time, the scrap metal business was lucrative. The same excuse about metal thefts and protecting the government’s interests was used for monopolising the business. But eventually, the idea was dropped due to the fall in scrap metal prices. The decision on the monopoly had nothing to do with the government’s interests. It had all to do with greed and abuse of power.
This sand monopoly could hold the construction industry to ransom, impose arbitrary prices and payment terms, including hidden costs. Like the import of vehicles using APs (Approved Permits), quotas could be allocated to sub-cronies to buy and sell sand, thereby driving costs.
How can SEDCO enforce against sand thefts? It has zero enforcement personnel and no statutory power to seize machineries, investigate, arrest or prosecute. So, people are entitled to draw their own conclusions. Is it a coincidence that the Chairman of SEDCO, the assemblyman for Membakut, is a family member of the Chief Minister?
