Decision on govt’s RM250mil NFC suit on Oct 13

Decision on govt’s RM250mil NFC suit on Oct 13

National Feedlot Corporation has also filed a RM86 million counterclaim against Putrajaya for losses suffered after the cattle project was suspended.

NFC chairman Salleh Ismail is among the 11 defendants named by the government in its RM250 million suit. (Bernama pic)
PETALING JAYA:
The Kuala Lumpur High Court has fixed Oct 13 to deliver its decision on the government’s RM250 million suit against the National Feedlot Corporation (NFC), its chairman Salleh Ismail, and nine others.

Justice Anand Ponnudurai set the date today, Bernama reported.

The proceedings today, which were to clarify certain aspects of the suit, were attended by senior federal counsel Nurhafizza Azizan and Asliza Ali on behalf of the government, and lawyer K Kirubakaran, representing the 11 defendants.

Salleh is the husband of former Wanita Umno chief Shahrizat Abdul Jalil.

In 2019, the government filed a suit against NFC, Salleh, his three children and six companies owned by the family to recover a loan of RM253.62 million, together with interest at 2% per annum and default interest on RM224.77 million.

Putrajaya is also seeking a declaration that Salleh’s family is personally liable for debt repayment of RM118.04 million, allegedly misappropriated from the loan.

It said it was also entitled to claim equitable title to the properties bought using NFC’s RM253.62 million loan from the government.

In 2007, the government approved the loan to NFC to turn the local cattle industry into a large-scale business with the aim of helping Malaysia become self-sufficient in beef production.

Under the loan agreement, NFC was supposed to repay RM17 million annually from 2012 to 2028.

The government has taken the position that the loan was a standalone agreement and that NFC had misappropriated the money.

The defendants said the loan disbursed was tied to the project’s implementation and certain lease agreements which the company had entered into.

NFC has also filed a RM86 million counterclaim against Putrajaya for losses suffered after the project was suspended.

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