PUTRAJAYA wants National Feedlot Corporation Sdn Bhd (NFC) to repay its RM 250 million loan in full, said Lim Guan Eng.

“The Ministry of Finance (MOF) has decided to seek full repayment of the loan to NFC and this matter was referred to the Attorney-General’s Chambers on August 29, 2018 for further action. 

“(The) A-G is currently looking into the matter and will announce the latest development when available,” the finance minister said in a statement today.

NFC was given the RM250 million loan at an interest rate of 2% for a period of 20 years and a grace period of three years, Lim said.

The loan was secured by a debenture signed together with the loan agreement on December 6, 2007.

“Based on the due diligence report by the accounting firm PricewaterhouseCoopers (PwC), the board of directors of NFC for the period between December 6, 2007 and December 31, 2011 consisted of Dr Mohamad Salleh Ismail and his children, Izran Salleh, Izmir Salleh, Izzana Salleh, as well as representatives from the federal and state governments. 

“However, the latest SSM search conducted as of May 17, 2019 only listed Salleh as the sole director of NFC, and two company secretaries.”

Based on the government’s records, the outstanding loan amount by NFC to the federal government is RM253.62 million, including interest and late interest charges as of April 30, 2019.

“From this sum, RM110.84 million is the amount due for repayment to the government as of April 30, 2019, consisting of loan principal arrears of RM82 million, loan interest of RM23 million and late interest charges of RM5.89 million.”

The government has issued a notice of default to NFC on September 4, 2014, Lim added.

The NFC project was mooted to breed 8,000 head of cattle by 2010 but the RM74 million centre in Gemas only bred 3,289, or 41% of the target, according to the auditor-general’s report.

Salleh is the husband of former Wanita Umno head Shahrizat Abdul Jalil and was embroiled in controversy for investing in several high-end properties. – May 20, 2019.