BY ERMIZI MUHAMAD
SHAH ALAM, SEP 22: Putrajaya must explain the RM40 million cashflow to Mydin Mohamed Holdings Bhd (Mydin) to manage the Kedai Rakyat 1Malaysia (KR1M) project.
Sungai Petani Member of Parliament, Datuk Johari Abdul said, that is to avoid negative perception from the public upon the temporary closure of KR1M.
“What has happened to KR1M? The government is wasting too much money and this is burdening the citizens as taxpayers.
“What about the stocks? Doesn’t it cause losses after the operation is halted?” he said when contacted.
Quoting MalaysiaKini, the portal’s survey found several KR1M branches around Klang Valley temporarily closed.
It was made to understand that the closure is due to government announcement to terminate the contract with Mydin as they are selling goods at prices higher than the market.
The instruction was issued by Deputy Prime Minister, Datuk Seri Ahmad Zahid Hamidi last July after government received many complaints from the public who were not satisfied with the price and goods sold in the shops.
In the 2012 Budget, the Prime Minister, Datuk Seri Najib Razak allocated a subsidy to Mydin to open 85 KR1M shops in Peninsular Malaysia, at an average of RM471,000 per shop.
However, Mydin, in a statement to FMT revealed that they are incurring huge losses managing the Prime Minister’s brainchild project.
KR1M was launched in June 2011 to reduce financial burden on citizens besides helping small and medium industry operators market their products.
