Federal Agricultural Marketing Authority Act 1965 Part II — The authority

The Authority

s 2

(1) There is hereby established a body corporate by the name of “Federal Agricultural Marketing Authority” (hereinafter referred to as “the Authority”) with perpetual succession and a common seal, and power to acquire and hold movable or immovable property and to dispose thereof or otherwise deal therewith. (2) The First Schedule shall have effect with respect to the Authority. (3) The Authority shall consist of the following members appointed by the Minister: (a) a Chairman; (b) a Director General; (c) a representative of the Treasury; (d) a representative of the Ministry of International Trade and Industry; (e) a representative of the Ministry of Agriculture and Agro- Based Industry; (f) a representative of the Department of Agriculture of the Ministry of Agriculture and Agro-Based Industry; (g) a representative of the Ministry of Primary Industries; (h) a representative of the Economic Planning Unit of the Prime Minister’s Department; (ha) a representative of the Farmers’ Organization Authority established under the Farmers’ Organization Authority Act 1973 [Act 110]; and (i) not more than five other persons who have had experience of and have shown capacity in matters relating to agricultural production, marketing, finance or administration. (4) (Deleted by Act A1235). (5) During the temporary incapacity from illness or during the temporary absence from Malaysia of the Chairman, Director General or other member of the Authority, the Minister may appoint another person to be a temporary Chairman, or member of the Authority, as the case may be. (6) A member of the Authority shall unless he sooner resigns or his appointment is revoked or he otherwise vacates his office hold office for such term as may be specified in his instrument of appointment, and shall be eligible for reappointment. (7) No member of the Authority shall incur personal liability for any loss or damage caused by any act undertaken by him in administering the affairs of the Authority, unless the loss or damage is occasioned by an intentionally wrongful act on his part.

Functions of the Authority

s 3

(1) The functions of the Authority shall be— (a) to co-ordinate the activities in respect of the marketing of agricultural produce, of the various persons or bodies of persons (whether incorporate or unincorporate and whether in the public services or otherwise) which are or might be concerned with any aspect of the marketing of agricultural produce; (b) to consider, and to promote where necessary and desirable, ways and means by which existing markets and methods of marketing of agricultural produce might be improved, and to seek and promote new markets and outlets for agricultural produce; (c) to collaborate with persons or bodies of persons (whether incorporate or unincorporate and whether in the public services or otherwise) to promote efficient and effective marketing of agricultural produce; (d) to promote and develop efficient and effective management of agricultural enterprises dealing in or processing agricultural produce; (e) to provide and supervise credit facilities for agricultural marketing and to ensure that these facilities are put to maximum use; (f) to engage in agricultural enterprises dealing in or processing agricultural produce; and (g) to deal with any other matter relating to the marketing of agricultural produce. (2) The Authority shall have power to do all things reasonably necessary for or incidental to the discharge of its functions, and in particular, but without prejudice to the generality of the foregoing it shall have power to— (a) regulate the marketing of any agricultural produce, including by the licensing of wholesalers, retailers, processors, importers and exporters; (b) prohibit, regulate or control the movement of any agricultural produce; (c) prescribe the grading, packaging, labelling and sealing of any agricultural produce and to issue certificates in respect thereof; (d) construct, establish, equip, maintain, let, lease, control, manage or operate markets or market premises for purposes of facilitating and regulating the purchase and sale of any agricultural produce; (e) deal in agricultural industry equipments; (f) require persons engaged in the marketing of any agricultural produce to register and to give in such manner as the Authority may specify such information with respect to such produce as the Authority may deem necessary; (g) cause to be carried out research and investigations relating to the marketing of any agricultural produce in particular with respect to its costs of production; (h) appoint agents for the purpose of carrying out its functions; (i) impose fees or any other charges it deems fit for giving effect to any of its powers or functions; (j) provide technical, advisory or consultancy services, or any other services to any person, corporation or party, and to receive in consideration of the services rendered by it such commission or payment as may be agreed upon; (k) carry out all the activities which appear to it to be requisite, advantageous or convenient for or in connection with the discharge of its functions, including transporting, packing, processing, grading, collecting, storing, assembling, importing, exporting, the sale by auction and other marketing methods generally of any agricultural produce, and to manage such activities; (l) with the approval of the Minister and the concurrence of the Minister of Finance, enter into equity participation in any enterprise where such participation appears to it to be requisite, advantageous or convenient for or in connection with the discharge of its functions; (m) exercise all functions and powers and perform all duties which under or by virtue of any other written law may be vested or delegated to it; (n) acquire, purchase, establish, construct, equip, maintain, let, lease, control, manage or operate a warehouse for the storage and inspection of any agricultural produce in any public quay, wharf or street, adjacent to any airport or sea port or any waterway connected to that sea port; and (o) prescribe the manner in which credit facilities are provided, including administrative fees payable, the period of credit, the method of repayment and the type of securities to be provided. (3) The Authority may, with the approval of the Minister and the concurrence of the Minister of Finance, from time to time— (a) establish corporations under this subsection; and (b) incorporate or promote the incorporation or expansion of companies under the Companies Act 1965 [Act 125], by such names as the Authority may think fit, to carry out and have the charge, conduct and management of any project, scheme or enterprise planned or undertaken by the Authority in the discharge of its functions and where the Authority so does, the provisions of— (i) the Second Schedule except paragraph 4A; and (ii) the Companies Act 1965, shall apply respectively to such corporations and companies. (3A) In addition to and not in derogation of its powers under subsection (3) the Authority may, with the approval of the Minister and the concurrence of the Minister of Finance, apply to register as a company under the Companies Act 1965 a corporation which has been established under subparagraph (3)(a) and where the Authority so does— (a) the provisions of subparagraphs (1) and (2) only of paragraph 4A of the Second Schedule; and (b) on the corporation being so registered, the provisions of subparagraphs (3) and (4) only of paragraph 4A of the Second Schedule and the Companies Act 1965, shall accordingly apply to that corporation. (4) The Minister may give to the Authority directions of a general nature, not inconsistent with this Act, as to the exercise of the functions of the Authority.

Appeal from the decision of the Authority

s 3A

Where, under this Act, a licence is required for marketing of any agricultural produce, any person aggrieved by the refusal of the Authority to issue or renew, or by revocation by the Authority of, such licence, or by imposition of conditions on such licence, may within thirty days of the decision being made known to him in writing appeal to the Minister, whose decision shall be final.

Directors General of the Authority

s 4

(1) The terms and conditions of appointment of the Director Genaral under subsection 2(3) shall be determined by the Minister and shall be set out in instrument of appointment. (2) The Director General shall be responsible for the day to day administration and management of the affairs of the Authority and shall perform such duties and exercise such powers as may be entrusted or delegated by the Authority or the Chairman. (3) Without prejudice to the generality of subsection (2), the Director General shall be responsible for the preparation of programmes, schemes or projects for the consideration of the Authority, the issue of policy guidance or elucidation of the decisions of the Authority and the supervision and control of the implementation of such decisions.

Appointment of officers and servants of the Authority

s 5

(1) The Authority may appoint such officers and servants as may be necessary for carrying out the purposes of this Act. (2) All members, officers or servants of the Authority, while discharging their duties as such members, officers or servants, shall be deemed to be public servants within the meaning of the Penal Code [Act 574]

s 6

(Deleted by Act A1235).

s 6A

(Deleted by Act A1235).

s 6B

(Deleted by Act A1235).

Protection of Director General, duly appointed officers, authorized officers, etc.

s 6C

No action or prosecution shall be brought, instituted or maintained in any court against the Director General, any officer duly appointed under this Act, any authorized officer, or any other person acting under the order, direction or instruction of the Director General or any officer duly appointed under this Act, for or on account of or in respect of any act done or purported to be done by him, if the act was done in good faith and in the reasonable belief that it was necessary for the purpose intended to be served by it.

Borrowing powers

s 7

The Authority may upon terms and conditions approved by the Minister of Finance borrow such sums as it may require for carrying out any of its functions under this Act.

Investment

s 8

The assets of the Authority shall, so far as they are not required to be expended by the Authority under this Act, be invested in such manner as the Minister of Finance may appove.

Fund and finance

s 9

(1) For the purposes of this Act, there is hereby established a fund to be administered and controlled by the Authority— (a) into which shall be paid— (i) such sums as may be provided from time to time by Parliament; (ii) such sums as may from time to time be borrowed by the Authority for the purpose of meeting any of its obligations or discharging any of its duties; (iii) all moneys earned by the operation of any project, scheme or enterprise financed in the Authority; (iv) all moneys earned or arising from any property, investment, mortgages, charges or debentures acquired by or vested in the Authority; (v) all other sums or property which may in any manner become payable or vested in the Authority in respect of any matter incidental to its powers and duties; (vi) all moneys earned from technical, advisory or consultancy services or any other services provided by the Authority; and (vii) all moneys collected by the Authority under the regulations made under this Act; and (b) out of which shall be defrayed— (i) all expenditure (including capital expenditure) incurred by the Authority in carrying out its functions; (ii) moneys for the repayment of any loan made to the Authority pursuant to its power to borrow; and (iii) moneys for financing any marketing scheme. (1A) The provisions of subsection (1)(a)(v) shall not apply where any corporation which has been established under paragraph 3(3)(a) is registered as a company pursuant to subsection 3(3A). (2) Before the beginning of June of each year the Authority shall submit to the Minister an estimate of the expenses (including those for development projects) for the following year in such form and with such particulars as the Minister may require; and the Minister shall before the beginning of November notify the Authority of the amount authorised for expenses generally or of the amounts authorized for each description of expenditure for the following year. (3) The Authority may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included therein.

Accounts and audit

s 10

(1) The Authority shall keep proper accounts and other records in respect of its operation and shall prepare statements of accounts in respect of each financial year. (2) The accounts of the Authority shall be audited annually by the Auditor General or other auditor appointed by the Authority with the approval of the Minister. (3) After the end of each financial year, and as soon as the accounts of the Authority have been audited, the Authority shall cause a copy of the statement of accounts in such manner as the Minister may require to be transmitted to the Minister, together with a copy of any observations made by the Auditor General or other auditor appointed under subsection (2) on any statement or on the accounts of the Authority. (4) The Minister shall cause a copy of every such statement and observations to be laid on the table of each House of Parliament.

Annual report

s 11

(1) The Authority shall not later than the 30th day of June of each year, cause to be made and transmitted to the Minister a report dealing with the activities of the Authority during the preceding year and containing such information relating to the proceedings and policy of the Authority as the Minister may from time to time require. (2) The Minister shall cause a copy of every such report to be laid on the table of each House of Parliament.

s 11A

(Deleted by Act A1235).

Power to make regulations

s 12

The Authority may, with the approval of the Minister, and in respect of (a) and (b) subject to the concurrence of the Minister of Finance, make regulations for all or any of the following matters: (a) the determination of salary scales and terms and conditions of employment of the officers and servants of the Authority, including the provision of loans to such officers and servants; (b) the establishment and management of a contributory provident fund for the officers and servants of the Authority or for payment of pensions, allowances or gratuities to the said officers and servants on retirement or otherwise ceasing to hold office; (ba) prescribe the offences under this Act and the regulations made thereunder which may be compounded; and (c) any other matter required by this Act to be prescribed and for the better carrying out of this Act.

s 12A

(Deleted by Act A1235).

Secrecy

s 13

Except for the purposes of this Act or of any criminal proceedings under this Act, no member, officer or servant of the Authority shall disclose any information with respect to any individual business, which has been obtained by him in the course of his duties and which is not published in pursuance of this Act; and a person contravening this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding six months or to both.

No person having interest to be appointed as member or employed as officer or servant of the Authority

s 14

(1) Subject to subsection (2), no person shall be appointed as a member or be employed as an officer or a servant of the Authority if he has any interest, directly or indirectly, in— (a) an enterprise in which the Authority has entered or proposes to enter into equity participation pursuant to paragraph 3(2)(l); (b) a corporation or company established, incorporated, promoted, expanded or registered pursuant to subsections 3(3) and 3(3A); or (c) a company or an undertaking with which the Authority or an enterprise, a corporation or company mentioned in paragraph (a) or (b) proposes to make a contract or has made a subsisting contract. (2) Notwithstanding subsection (1) and subject to subsection (3), such person may be appointed as a member of the Authority under paragraph 2(3)(i) but in so appointing him the Minister may impose any conditions or restrictions that the Minister may deem fit. (3) Prior to his being appointed as a member or being employed as an officer or a servant of the Authority, every person shall disclose fully— (a) to the Minister in the case of a person to be appointed as a member; and (b) to the Authority in the case of a person to be employed as an officer or a servant, any such interest as is mentioned in subsection (1), and on his being so appointed or employed, such person shall not further acquire any such interest. (4) Subject to subsection 15(1), a member who is appointed or an officer or a servant who is employed contrary to subsection (1), or who on being appointed or employed further acquires any such interest, shall have his appointment revoked forthwith by the Minister or his employment terminated by the Authority without notice, as the case may be. (5) Any person, member, officer or servant who contravenes this section, section 15 or a condition or restriction imposed under this section or section 15 commits an offence and shall be liable on conviction to imprisonment for a term not exceeding five years or to a fine not exceeding twenty-five thousand ringgit or to both. (6) For the purposes of this section and section 15, the having or acquiring of any such interest as is mentioned in subsection (1) by his spouse or any of his children shall be deemed to give the person, member, officer or servant concerned an indirect interest.

Disclosure of existing interest

s 15

(1) Every member, officer or servant having any interest as is mentioned in subsection 14(1) shall, within six months of the coming into force of this section, disclose fully to the Authority the fact of the interest and the nature thereof and such disclosure shall be recorded in the minutes of the Authority and the member shall at no time take part in any proceedings of the Authority relating to the undertaking, enterprise, company, corporation or contract in which he has the interest and the officer or servant shall cease to exercise all powers and duties in relation thereto, but the member, officer or servant may otherwise continue to be— (a) a member subject to any conditions or restrictions the Minister may impose; or (b) an officer or a servant subject to any conditions or restrictions the Authority may impose. (2) Where the member having such interest is the Chairman, he shall vacate the chair and another member shall be elected to preside during the proceedings relating to the undertaking, enterprise, company, corporation or contract in which he has the interest. (3) Any member, officer or servant who contravenes this section commits an offence and shall be liable on conviction to the punishment provided in subsection 14(5).

Power to compound offences

s 15A

(1) The Director General may, with the consent of the Public Prosecutor, compound any offence under this Act or the regulations made under this Act which has been prescribed to be compoundable by accepting from the person reasonably suspected of having committed the offence such amount, not exceeding fifty per centum of the amount of maximum fine for that offence, within such time as may be specified in a written offer to compound made to such person. (2) An offer to compound under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted. (3) Where the amount specified in the offer to compound is not paid within the time specified in that offer, or within such extended time as the Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer to compound was made. (4) Where an offence has been compounded under subsection (1), no prosecution shall, within the time specified in subsection (3), be instituted in respect of the offence against the person to whom the offer to compound was made. (5) The Director General may in writing delegate his functions and duties under this section to any officer of the Authority subject to such terms and conditions as he thinks fit, but a delegation under this subsection shall not preclude the Director General from performing or exercising at any time the functions and duties that have been delegated.

s 16

(Deleted by Act A200).