Out-of-court settlement in NFC suit likely, High Court hears

KUALA LUMPUR: There is a negotiation for a possible out-of-court settlement of the suit filed by the government against the National Feedlot Corporation (NFC) to recover some RM253.6mil loan sum, the High Court heard.

High Court judge Justice Anand Ponnudurai is set to resume hearing of the case today, which was earlier fixed for yesterday, after senior federal counsel

Nurhafizza Azizan requested for postponement for both parties to negotiate the settlement.

The suit against NFC is to recover RM253.6mil in loan repayments and interest from the company in connection with the National Feedlot Centre project in Gemas, Negri Sembilan, according to Bernama.

NFC’s lawyer Datuk K. Kirubakaran also informed the court that NFC chairman Datuk Dr Mohamad Salleh Ismail, who was supposed to testify yesterday, was not in court.

Justice Annand, who has been transferred to Penang High Court, when adjourning the hearing to today, said the case has been going on for a long time since 2020 and in the past, the parties involved had requested for postponement to settle the matter.

“The parties could come to an amicable settlement while the trial is ongoing. I think it’s better to proceed the case. If parties settle the suit, it is good. Otherwise, I do my job and make the decision,” he said,

In its suit, the government named the NFC as the first defendant, while Mohamad Salleh, who is former Women, Family and Community Development Minister Tan Sri Shahrizat Abdul Jalil’s husband, and their three children, Wan Shahinur Izran, Wan Shahinur Izmir and Wan Izzana Fatimah Zabedah, are the second to fifth defendants, respectively.

Other defendants are six companies controlled by Mohamad Salleh’s family, comprising National Meat & Livestock Corporation Sdn Bhd, Real Food Corporation Sdn Bhd, Meatworks Corporation Sdn Bhd, Agroscience Industries Sdn Bhd, Asian Bioscience Corporation Sdn Bhd, and Technology Imageware (M) Sdn Bhd.

The government claimed that it had signed a loan agreement totalling RM250mil with NFC on Dec 6, 2007, to finance the costs of establishing and operating a National Feedlot Centre in Gemas as part of its policy to develop and increase beef production.

The loan was disbursed in three tranches and Mohamad Salleh’s family was claimed to have made 10 withdrawals amounting to RM180.51mil from Jan 24, 2008, to Jan 3, 2011.