KUALA LUMPUR: The High Court will decide on Feb 26 an appeal to strike out two CBT charges against National Feedlot Corporation executive chairman Mohamad Salleh Ismail for RM9.1mil and RM40mil.
The date was fixed by Justice Mohd Azman Husin after hearing submission by parties in the appeal.
Counsel Tan Sri Muhammad Shafee Abdullah, acting for NFCorp chairman Mohamad Salleh Ismail, argued that National Feedlot Corporation (NFCorp) had taken a loan of RM250mil and the sum was not a grant.
He claimed the matter would be of a civil nature and not criminal.
“This money has been legally passed to NFCorp and is no longer the government’s money.
“NFCorp has an obligation to repay the loan subsequently. Therefore, NFCorp is not the trustee for the fund for the government,” said Shafee.
DPP Syed Faisal Syed Amir appeared for the prosecution.
The court was told that at an NFCorp Board Meeting held on December 22, 2010, the auditor had during the tabling of the audited FY2009 Financial Report, informed the board of the advance of RM81,324,745 from NFCorp to National Meat & Livestock Corporation Sdn Bhd (NMLC), a related company in the NFCorp group.
The amount was inclusive of the RM40mil and RM9,758,140 stated in the CBT charges.
NFCorp’s audit report, approved by the board, was circulated to all members of the board including representatives from the Finance Ministry, Agriculture and Agro-Based Industry Ministry, and the Mentri Besar Inc of Negri Sembilan, for their information.
This matter was also recorded in the NFCorp board meeting of September 21, 2011 in which the board had approved and agreed that “NFCorp to ratify the advances made to NMLC with no interest to be charged.”
“No objections were received from the government representatives nor from the shareholders, all of whom were members of the board of NFCorp,” Shafee argued.
The court was told that whilst the defendant had dominion over the funds as a director of the company he had not misappropriated the funds, what more dishonestly.
As such, Shafee said the charges read together with Section 409 in consonant with 405 would demonstrate that there were no elements of CBT.
In addition, Section 173G would allow for the accused to strike out the CBT charges , he added.
“The points raised today show that there had never been any intention on the part of the defendant for any wrong doing in respect to the charges laid.”
On March 12, 2012, Dr Mohamad Salleh, in his capacity as NFCorp director, was charged with CBT amounting to RM9.7mil to fund part purchase of two units of condominium here and transferring RM40mil into the account of National Meat & Livestock Corporation, which he owns with one of his sons.He is said to have committed the first offence at the CIMB Islamic Bank branch in Taman Tun Dr Ismail here between Dec 1 and Dec 4, 2009 and the second offence between May 6 and Nov 16, 2009.
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