NFCorp wants to repay RM250 million loan but MOF won’t approve

KUALA LUMPUR, March 9 – The National Feedlot Corporation Sdn Bhd or NFCorp is seeking the government’s approval to repay the balance of the RM250 million loan it owes the government.

NFCorp chairman Datuk Seri Dr Mohamad Salleh Ismail said the repayment was proposed via several letters to the Malaysian government as early as November 2018, and the latest was on February 4, 2020.

“Until today, the NFCorp has yet to get any approval to make the repayment; Instead, a civil suit was filed against NFCorp and several parties have been asked by the Attorney-General to make the payment.” said Salleh in a statement.

Shocking and confusing lawsuit

He said the filing of the suit was “shocking and confusing” as the company had proposed to repay the loan.

“The suit was filed to demand a repayment of the remaining loan. However NFCorp had agreed to repay the same debt a year and a half ago, pending approval by the Finance Ministry,

“I hope the AGC and MoF will give a fair and equitable opportunity for me to resolve and settle the loan balance,” Salleh said further.

In June last year, the government had sued NFCorp, Mohamad Salleh and three of his children for a total repayment of RM253.6 million in loan including interest.

Salleh is the husband of former Wanita Umno chief Tan Sri Shahrizat Abdul Jalil.

In 2006, the Agriculture and Agro-based Industry Ministry contracted Agroscience Industries Sdn Bhd (AISB) to develop an integrated livestock farming and beef production facility.

AISB incorporated NFCorp in December that year, and in January 2008, they received the loan from the government. They imported its first batch of 904 cattle by February 2008.

NFCorp issues turned political by opposition politicians

In 2011, the Auditor-General’s Report highlighted that National Feedlot Centre (not NFCorp) was poorly managed.

The report was turned political, aimed at Tan Sri Shahrizat and Barisan Nasional by opposition politicians.

In a statement released on its website, Auditor-General Tan Sri Ambrin Buang also said nowhere in the report did it refer to the NFC as being “in a mess”, adding that those words were used by other parties.

The Auditor-General said today the audit it conducted was on the National Feedlot Centre project, and not the company National Feedlot Corporation Sdn Bhd (NFCorp).

He also clarified that the audit analysis found that the objectives of the NFC were not fully realised due to several factors which have been explained in the Auditor-General’s Report 2010.

Among them, based on a implementation agreement signed in March 2010, the production target for NFC of 38,600 cattle for 2010 could not be achieved as the Entrepreneur Development Programme  (EDP) which involves 130 satellite farm operators were yet to  be implemented.

Among the political allegations against the company was that the monies were used for other purposes, including acquiring of properties.

NFCorp acquitted and won lawsuits

Salleh had defended the company and was acquitted of all CBT charges in 2015. The conditions of the loan agreement do not prevent them from investing in properties.

NFCorp also won their lawsuit against opposition politician Rafizi Ramli in October 2016, which was overturned via appeal only after the opposition parties became the government in 2018.

The government civil suit continues for 4 days from tomorrow and the public can expect to learn how the government which held ‘Golden Share’ in NFCorp contributed to the failure of the business.