NFCorp ‘breached loan terms’

(NST) – The National Feedlot Corporation (NFCorp) has breached the loan conditions under the agreement with the government because it has used the money, which is meant for the cattle industry, for other purposes. NFC

Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz said the loan was granted to NFCorp on the basis it could help meet the government’s objective of reducing beef imports.

“It (the National Feedlot Centre) is a national project. This company (NFCorp) submitted a proposal stating it was capable of meeting this goal. The loan was given based on this.

“There has been a constructive breach of trust. The money, which is meant for the cattle industry, was used for something else.

“It was specifically for a project that could raise cattle and the produce be sold at a cheaper price.

“But the money was used for something else. You don’t need to be a lawyer to see that there has been a breach of trust,” he said at a press conference here yesterday.

The Padang Rengas member of parliament reiterated his statement on Sunday that the government could recall the loan as NFCorp had bought multi-million condominiums and made other purchases instead of focusing on  cattle breeding.

  “I said NFCorp must return the money. I never said anything about Shahrizat (Women, Family and Community Development Minister Datuk Seri Shahrizat Abdul Jalil). This has nothing to do with her,” he stressed.

  The de facto law minister said until the RM250 million federal loan was recovered and those responsible hauled  to court, the people would not be satisfied.

  He also expressed confidence the money could be recovered from NFCorp as the full amount had not been drawn down and the company’s assets were still frozen.

  “The public is more concerned when the money would be recovered. There is no compromise.

  “If the  Malaysian Anti-Corruption Commission (MACC) finds an individual guilty of an act that can be considered an offence under the  law, then he must be charged.

  “Once the money is recovered, it is only fair the government re-tenders the project.”

   Commenting further, he said it was a moot point to insist Shahrizat stepped down.

  “It has been two months and people are still clamouring for her resignation.

  “If she  resigns now, does it mean the money is considered taken and not returned?”

  The NFCorp controversy unfolded after the 2010 Auditor-General’s Report said the RM250 million project had not met the targets set by the government.

  In December 2007, the government had approved a soft loan to enable the corporation to start a national feedlot centre in Gemas, Negri Sembilan.

  Shahrizat’s husband, Datuk Seri Dr Mohamed Salleh Ismail, is NFCorp executive chairman.