NFCorp: Our New Buyer Will Repay Loan to Putrajaya

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The National Feedlot Corporation Sdn Bhd’s (NFCorp) new buyer is ready to fully repay the company’s outstanding loan to the federal government, company chairman Datuk Seri Mohamad Salleh Ismail said today.

Responding to the Finance Ministry statement on its decision to seek full repayment of NFCorp’s outstanding loan amount of over RM253 million, Mohamad Salleh said he welcomed the statement.

“Alhamdulillah, since October 25, 2018, NFCorp has already had a new buyer that is prepared and had agreed to pay back NFCorp’s outstanding loan in full within three months from the government’s agreement to the restructuring of NFCorp.

Koh Jun Lin/Malaysiakini

“NFCorp is still awaiting the government’s agreement,” he said in a statement that was made available to Malay Mail.

Mohamad Salleh, who is also former Umno Wanita leader and former minister Tan Sri Shahrizat Abdul Jalil’s husband, said the current prime minister has already been notified of NFCorp’s new buyer’s intention to make the full repayment.


Earlier, it was reported that the government is seeking a full repayment of the RM253.6 million loan owed by the NFCorp.

Finance Minister Lim Guan Eng said the Attorney-General’s Chambers (AGC) would conduct court claims against NFCorp as the company continues to fail to service its loan, having received RM250 million from the government in 2008.

“Based on the Complete Statement of Federal Government Loans, as of April 30, 2019, the outstanding loan amount by NFCorp to the government is RM253.6 million, which includes interest and late interest charges.

Lim Huey Teng/Malaysiakini

“From this sum, RM110.8 million is the amount due for repayment to the government as of April 30, 2019, consisting loan principal arrears of RM81.99 million, loan interest of RM22.97 million and late interest charges of RM5.9 million.

“The ministry has decided to seek full repayment and this matter was referred to the AGC on Aug 29, 2018, for further action. The AGC is currently looking into the matter and will announce the latest development when available,” he said in a statement today.

Lim also said that a search conducted with the Registrar of Companies on May 17 this year showed that Mohamad Salleh was listed as the sole director of NFCorp and two company secretaries.

This differed from the information from a due diligence report by the accounting firm PricewaterhouseCoopers (PwC), he added.

In the report, it showed that Mohamad Salleh and his children; Izran Salleh, Izmir Salleh and Izzana Salleh, as well as representatives from the federal and state governments were the NFC board of directors for the period between Dec 6, 2007, and Dec 31, 2011.

NFCorp received the RM250 million soft loan from the government in January 2008 for its cattle-breeding project that was scheduled to be repaid between 2012 and 2028.

However, having made repayments amounting to RM34.98 million for 2012 and 2013, NFCorp failed to settle its 2014 instalment.

This led to the then Barisan Nasional government to issue a notice of non-payment, which the company again failed to comply, to settle the outstanding amount.

The government then, on Sept 4, 2014, issued a notice in the event of default to terminate the agreement and take legal action.

The RM250 million loan was meant for the National Feedlot Centre (NFC) project in Gemas, Negri Sembilan, aimed at boosting the production of beef to reduce import.

However, the project came under heavy scrutiny after the Auditor-General’s Report 2010 commented that it failed to fulfil the objective, with PKR’s Rafizi Ramli later revealing that the money was used to buy luxury condos.

On March 12, 2013, NFCorp director Datuk Seri Dr Mohamad Salleh Ismail, who is the husband of Umno’s Tan Sri Shahrizat Abdul Jalil, was charged with criminal breach of trust for misappropriation of the money.