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Finance Ministry seeks full repayment of RM253.6 million from NFC

May 21, 2019

The Finance Ministry is seeking full repayment of RM253.6 million in outstanding loan, interest and late payment charges from the National Feedlot Corporation (NFC).

Finance Minister Lim Guan Eng said his ministry sought full repayment of the loan and had referred the matter to the Attorney-General’s Chambers on August 29 last year.

“The AG Chambers is currently looking into the matter and will announce the latest development when available,” he said in a statement today.

NFC received an RM250 million loan at an interest rate of two percent per annum over a period of 20 years plus three years grace period on Dec 6, 2007 to help develop a national beef valley.

However, it came under the spotlight in 2012 after it was revealed that NFC had used the loan for other purposes, including the acquiring of property.

The board of directors of the company comprised former Wanita Umno chief Shahrizat Abdul Jalil‘s husband Mohamad Salleh Ismail and children Izran Salleh, Izmir Salleh and Izzana Salleh.

However, at present, Salleh is now the sole director.

Lim said based on the complete statement of federal government loans as of April 30, the outstanding loan owed by NFC to the federal government is RM253,618,455.03, including interest and late interest charges.

Of this sum, he said RM110,840,854.28 is due for repayment as of April 30, consisting a loan principal arrears of RM81,987,629.65, loan interest of RM22,967,131.55 and of RM5,886,093.08.

Lim said a notice of declaration of the event of default in accordance with clause 14 of the loan agreement was already issued to NFC Corp on Sept 4, 2014.

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From → Malaysia Upclose

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