KUALA LUMPUR: The suspension period of the National Farmers Organisation (Nafas) will depend on recommendations from the Special Monitoring Committee on Nafas Governance, says Datuk Seri Mohamad Sabu.
The Agriculture and Food Security Minister emphasised the importance of reforms to ensure Nafas operates effectively and adheres to proper governance principles.
“This is the third suspension of Nafas. The first occurred under then Agriculture Minister Datuk Seri Anwar Ibrahim (1984-1986), the second under the late Datuk Seri Salahuddin Ayub, and now, the third under my tenure.
“For the current suspension, we will look at the recommendations made by those in charge of governance (Special Monitoring Committee on Nafas Governance established on Feb 7),” he told the Dewan Rakyat on Tuesday (Nov 19).
Mohamad said the committee is tasked with providing recommendations by Oct 31.
Once these reforms are finalised, he said the suspension may be lifted with advice from the ministry’s legal advisors or the Attorney General’s Chambers (AGC).
“We will ensure that once the suspension is lifted, Nafas operates efficiently without overlapping roles in the future,” Mohamad said.
Nafas, which comprises 603,000 members, 280 Area Farmers Organisations, and 14 State Farmers Organisations, has faced scrutiny over governance issues.
Established in 1979, Nafas has been the sole government fertiliser supplier but has struggled with inefficiencies.
Of its 16 subsidiary companies, Mohamad said only four linked to fertiliser contracts have been profitable.
Mohamad highlighted findings from the 2018 Special Audit Report on Nafas, which identified 42 governance issues that required urgent attention.
However, he said improvements were delayed due to a government transition.
Upon assuming his role, Mohamad said he gazetted Nafas as a public body under the Malaysian Anti-Corruption Commission Act 2009, allowing for deeper investigations into its governance and management.
The suspension of Nafas’s constitution on Nov 1 was executed under Section 7(1) of the Farmers Organisations Act 1973.
During this period, the organisation is administered by an appointed administrator, advised by a council chaired by former Public Service Department director-general Tan Sri Zainal Rahim Seman.
Mohamad assured that Nafas’s daily operations, particularly the supply of fertiliser to padi farmers, remain unaffected.
He said the Registrar of Farmers Organisations is monitoring Nafas’s operations and working to enhance governance, aiming for a holistic recovery of the organisation’s credibility and effectiveness.
“We are committed to reforms, including amendments to the Farmers Organisation Regulations 1983 and Nafas’s constitution, to improve governance and prevent overlapping roles,” Mohamad said.
Additional reforms include restructuring subsidiary companies, strengthening auditing mechanisms, enforcing a code of ethics, and diversifying income sources, he said.
Mohamad reaffirmed the ministry’s cooperation with the Malaysian Anti-Corruption Commission (MACC), which is investigating allegations of mismanagement and corruption involving Nafas.
“We will not point fingers at former ministers or deputies. Let the MACC conduct a thorough investigation and prosecution without claims of selective enforcement,” he said.
He said the findings of the Registrar’s ongoing monitoring and recommendations will be submitted to the Cabinet periodically.
Mohamad emphasised that the reforms are aimed at restoring public trust and ensuring Nafas fulfils its original mission of promoting the economic and social welfare of its members.
