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Thursday October 24, 2013 MYT 12:00:00 AM
Thursday October 24, 2013 MYT 11:56:16 AM
KUALA LUMPUR: Efforts to revive the controversial National Feedlot Project has hit a snag after parties under a Malaysia-Japanese RM20mil joint-venture agreement failed to reach a deal, said Prime Minister Datuk Seri Najib Tun Razak.
Najib, who is Finance Minister, told Tony Pua (DAP-PJ Utara) in a written reply in Dewan Rakyat that the deal was cancelled because the Government and Kirimitonas Agro Sdn Bhd (KASB) could not reach an agreement.
He said the Government agreed to begin negotiations on April 19 with KASB, which is a joint-venture effort between Otoshitos Sdn Bhd and Hannan Food Group.
“The company was selected based on an agreement that they would inject RM20mil in capital in a bid to revive the project.
“KASB had offered to take over all of NFC’s assets and liabilities.
“The deal was to ensure that the project will carry on to meet its objectives of ensuring sufficient supply of beef.
“However, both parties could not reach an agreement (and) negotiations have ended,” he said.
Najib said the company was picked as it had agreed to inject RM20mil in capital in a deal seen as an effort to revive the cattle farming project.
Pua later told reporters at the Parliament lobby that the project would not have attracted investors in the first place since they would have to take over NFC’s debts and liabilities and also inject new capital.
In July, Second Finance Minister Datuk Seri Ahmad Husni Hanazlah said that RM79.9mil out of the RM250mil loaned to NFC have been recuperated while the company’s assets worth RM23.3mil in the form of two parcels of land in Putrajaya, three plots of land in Gemas and two units of properties in Menerung Township Villa.
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Government, Najib, feedlot
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