Sabah’s sand monopoly plan slammed
There are fears that the sand monopoly will hold the construction industry to ransom, impose arbitrary prices and payment terms, including hidden costs.
(Free Malaysia Today) – The Sabah government’s plan to enforce a sand-mining monopoly in the new year has run into immediate opposition.
Former chief minister Yong Teck Lee said the Barisan Nasional government’s move to become the sole supplier of sand to the construction industry was frightening as it was taking exclusive control of a business.
The Sabah Progressive Party (SAPP) leader urged sand operators and consumers to complain to the anti-monopoly Malaysia Competition Commission under Section 15 of the Competition Act 2010 that takes effect on Jan 1, 2012.
Under the plan, state government subsidiary, Sabah Economic Development Corporation (Sedco) would have a monopoly on the extraction and supply of sand to the construction industry in the state.
“Our anti-monopoly laws seek to protect consumers, businesses and the economy. Under Section 4(2)(b), it is an offence to monopolise the market as well as the sources of supply.
“It is understood that the Competition Commission will investigate the MAS-Air Asia share swap deal that has created a super monopoly of the aviation industry, leading to reduced flights, reduced destinations, higher fares and cancellation of Tiger Air flights to Sabah,” he said.
Yong noted that such a move 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.
“Now 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),” he noted.
He expressed concern that 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,” he cited.
