No personal guarantee in loan to NFCorp, says PAC insider

(TMI) – There was no personal guarantee involved in the RM250 million government loan to the National Feedlot Corporation (NFCorp), giving rise to the question who is accountable to repay if the National Feedlot Centre (NFC) project fails, a member of the Parliamentary Public Accounts Committee (PAC) has confirmed.

This comes amid NFCorp’s recent remarks made on January 27, where its management said that the government loan must be repaid else “we will be declared bankrupt or locked up in jail”.

“There was no personal guarantee involved, that’s what we were told. It was a soft loan given to the company.

“As far as we are aware, nobody is held accountable,” a PAC source told The Malaysian Insider.

“There were no proper guidelines drawn in the beginning as to how the money was to be used… that is why it is now difficult to establish any instances of monetary abuse,” the source added.

NFCorp executive director Wan Shahinur Izmir Salleh had said on Friday that “stories saying we are getting free money are unreasonable.”

“RM250 million is a big amount. If we play around without direction, my children’s future will be destroyed. For centuries, we will be saddled with debt,” he said, looking uncomfortable in front of attendees and reporters who had waited for two hours for him to arrive.

Pua said the issue of a personal guarantee involving the loan was not mentioned during any PAC meeting. — File pic

“The loan agreement has been signed. If we don’t pay back, we will be declared bankrupt or locked up in jail. We will pay every sen plus interest. The question of misappropriation does not arise,” said Wan Shahinur Izmir, who is minister Datuk Seri Shahrizat Abdul Jalil’s son.

PAC member Tony Pua told The Malaysian Insider that the issue of a personal guarantee involving the loan was not mentioned during any PAC meeting, and that many documents — financial statements and loan agreements — have yet to be presented to the PAC.

“I don’t remember anyone asking about personal guarantee. I don’t think these loans will involve personal guarantee though,” the DAP national publicity secretary said.

Another PAC member, PKR’s Datuk Kamarul Baharin Abbas, echoed Pua’s remarks, saying that “as far as I know there were no personal guarantees.”

He also said the PAC had yet to receive documents on the loan for the cattle-farming project from NFCorp.

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