NFC’s RM163 million ‘burnt’

By stripping off NFC’s assets and awarding it to a new company, the government looks set to forgo more than half of the RM250 million loan amount, says PKR.

UPDATED

KUALA LUMPUR: The government looks set to forgo RM163 million of the RM250 million loaned to the National Feedlot Centre (NFC) by deciding to strip off its assets and transfer it to a new company, said PKR.

It’s strategic director, Rafizi Ramli, said this following reports that a Malaysian-Japanese venture, Kirimitonas Agro Sdn Bhd, had received approval to run the project.

NFC was run by the family members of Wanita Umno chief Shahrizat Abdul Jalil under NF Corporation (NFCorp) until the government ceased its contract end of last year.

Shahrizat’ family was accused of abusing the loans and her husband, NFCorp chairman Mohd Salleh Ismail was charged in court.

Rafizi said going by the government’s reply, they only confiscated three of NFC’s assets worth RM18 million. These included a condominium unit, a plot of land in Bangi and Putrajaya each.

Besides, the government has said that of the RM250 million loan, RM181 million has been disbursed to NFCorp and only the remaining RM69 million could still be recovered.

Rafizi said while the government could recover a portion of the money (the RM69 million and RM18 million), it is unlikely to get back the balance of RM163 million since the new firm is absorbing only the assets, not the liabilities.

The assets included NFC’s cattle farm in Gemas, Negeri Sembilan.

More than a bailout
Rafizi said that since NFCorp was no longer operational, it could be considered as being unable to repay its loans and was set to undergo winding-up process.

Should that be the case, he said, Shahrizat’s family was only liable to their shares worth RM2 million because the government did not impose a personal guarantee on NFCorp’s directors.

“It’s more than a bailout, they simply don’t need to pay. It just like somebody takes a loan and goes to enjoy his life. Then later he comes back and winds up the company,” he said.

“For now, I think the RM163 million is considered burnt,” he added.

PKR women chief Zuraida Kamaruddin, who was also at the press conference, said the government must come clean by announcing their next plan on NFC.