Kota Kinabalu: The State Government is not appointing a sole agent to purchase scrap iron in Sabah, Local Government and Housing Assistant Minister Edward Yong Oi Fah assured, Thursday.Instead, it is only proposing to appoint a sole exporter of scrap iron aimed at monitoring all scrap iron exported from the State. Under the proposal, all existing scrap iron dealers are allowed to operate their business as usual.
"The proposal is to prevent the export of stolen cable wires, metals and iron," Yong said, in response to statements by Scrap Metal Dealers spokesman Callistus Wong as well as Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee.
He said under the proposal, the sole exporter will impose very minimal administrative charges on the scrap iron dealers. "The information (of the Government appointing sole agent to purchase scrap iron) is wrong and not true."
On Wednesday, Callistus Wong alleged that the move by the Government to appoint a sole agent was monopolistic and would deny their three decades of hard work and investment poured into their business.
He added that many dealers were still servicing their bank loans for the purchase of machinery equipment and land to operate their business.
Yong (Teck Lee) had asked the Government to reverse the decision of appointing sole agent, saying a monopoly would fuel inefficiency, provide an opportunity to abuse the sole agency right and kill private sector initiative.
"The Government has no intention to rob their business as alleged. The proposal to appoint sole exporter is a measure to discourage rampant thieves of cable wires belonging to Sabah Electricity Sdn Bhd, Telekom Malaysia ª and contractors," Minister Yong said.
All scrap iron dealers or buyers could still export their scrap metal but it must be through the appointed sole exporter.
Yong said the public have been complaining of electricity supply and telephone and internet connection being suddenly cut off due to cable thieves.
"SESB and Telekom Malaysia are losing millions of ringgit while consumers suffer and are deprived of access to telecommunication facilities," he said.
He stressed that the public was unhappy with the Government over not doing enough to tackle the problem.
Minister Yong said he called two meetings with scrap iron buyers and dealers to get their comments and solution on how to curb the cable theft problem but that the proposal given by them was not good enough to solve it.
Yong also had meetings with police, Customs, SESB and Telekom Malaysia and they agreed to the sole exporter proposal. The relevant Federal Ministry also agreed to the proposal to give only one export license of scrap iron from Sabah.
The company to be given a sole exporter permit is a Government-linked company. On the misunderstanding, Yong said it started when the company was still in the process of applying the export license but already going around to conduct a survey.
Yong said he would call another meeting with the scrap iron dealers for further discussion.
