20 May 2019
Guan Eng: AG to sue to compel NFCorp to cough up over RM250m in outstanding debt to govt
KUALA LUMPUR, May 20 — The attorney general (AG) will be mounting a lawsuit to compel the National Feedlot Corporation Sdn Bhd (NFCorp) to cough up RM253,618,455.03 which it owes the federal government, Finance Minister Lim Guan Eng said today.
Details of this latest development, however, will only be made available at a later date.
Govt to seek full repayment of RM250 million loan to NFCorp
PETALING JAYA: The government has decided to seek full repayment of the RM250 million loan given to National Feedlot Corporation Sdn Bhd (NFCorp) in 2008, along with interest and late interest charges as of April 30 this year.
The finance ministry said in a statement today that the total outstanding amount owed by NFCorp is RM253,618,455.03.
“From this sum, RM110,840,854.28 is the amount due for repayment to the federal government as of April 30, 2019, consisting of loan principal arrears of RM81,987,629.65, loan interest of RM22,967,131.55 and late interest charges of RM5,886,093.08,” Finance Minister Lim Guan Eng said.
According to the ministry, NFCorp received the RM250 million loan from the government on Jan 9, 2008 at an interest rate of 2% with a loan period of 20 years and grace period of three years.
The loan was secured by a debenture signed alongside the loan agreement on Dec 6, 2007.
Lim said based on the due diligence report by accounting firm PwC, the board of directors from Dec 6 that year to Dec 31, 2011, consisted of Mohamad Salleh Ismail and his children, Izran Salleh, Izmir Salleh and 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 Ismail as the sole director of NFCorp, and two company secretaries,” he said.
He said a notice of declaration of event of default was issued to NFCorp on Sept 4, 2014, in accordance with Clause 14 of the loan agreement between the company and the federal government.
“The finance ministry has decided to seek full repayment of the loan to NFCorp, and this matter was referred to the Attorney-General’s Chambers (AGC) on Aug 29, 2018 for further action.”
He added that the AGC is looking into the matter and will announce any developments when available.