Guan Eng: NFC still owes the govt over RM250mil


PETALING JAYA: The National Feedlot Corporation (NFC) still owes the government over RM250mil, says Finance Minister Lim Guan Eng.

"Based on the complete statement of federal government loans as of April 30, 2019 from the Accountant-General's Department, the outstanding loan amount by NFC to the government is RM253,618,455.03, which includes interest and late interest charges as of April 30, 2019," he said in a media statement on Monday (May 20).

Of this sum, Lim said that, RM110,840,854.28 is the amount due for repayment to the Federal Government as of April 30 this year, consisting of RM81,987,629.65 in outstanding in principal loan, loan interest of RM22,967,131.55 and late interest charges of RM5,886,093.08.

Lim also said that a search conducted with the Registrar of Companies on May 17 this year showed that Datuk Dr Mohamad Salleh Ismail was listed as the sole director of NFCorp and two company secretaries.

This differed from the information from a due diligence report by the accounting firm PricewaterhouseCoopers (PwC), he added.

In the report, it showed that Mohamad Salleh and his children; Izran Salleh, Izmir Salleh and Izzana Salleh, as well as representatives from the federal and state governments were the NFC board of directors for the period between Dec 6, 2007 and Dec 31, 2011.

Lim noted that a notice of declaration of event of default in accordance with Clause 14 of the loan agreement between the federal government and NFC was issued to the company on Sept 4, 2014.

"The Finance Ministry has decided to seek full repayment of the loan to NFCorp, and this matter was referred to the Attorney General's Chambers (AGC) on Aug 29 last year for further action.

"The AGC is currently looking into the matter and will announce the latest development when available," Lim added.

On Jan 9, 2008, National Feedlot Corporation Sdn Bhd (NFC) received a loan facility of RM250,000,000 from the Federal Government at an interest rate of 2%, with a loan period of 20 years and grace period of three years.

This loan is secured by a debenture which was signed alongside the loan agreement on Dec 6, 2007.

The NFC was set up in 2007 with its subsidiary National Feedlot Centre to expand the local beef industry, aimed at reducing dependency on imported beef.

However, the project became embroiled in controversy for being poorly managed as noted in the Auditor-General's Report 2011.

Last month, Agriculture and Agro based Industry Minister Datuk Salahuddin Ayub revealed that a company has indicated interest in taking over NFC.

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