Court orders NFCorp to repay RM120.6m loan to Putrajaya

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The Kuala Lumpur High Court has ordered National Feedlot Corporation (NFCorp) to repay RM120.6 million in loans to Putrajaya in regard to the failed national cattle project.

The civil court this afternoon partly allowed the government’s legal action against NFCorp and its related firms as well as the family of former Umno Wanita chief Shahrizat Abdul Jalil.

Judge Anand Ponnudurai ordered the 11 defendants to return lands in Gemas, Putrajaya and One Menerung – which were purchased with the loan sum – to be returned to the federal government which is the beneficial owner of these properties.

However, the judge also partly allowed the defendants’ counterclaim and ordered the government to pay RM10,000 in nominal damages to NFCorp, its six related firms, Shahrizat’s husband, NFCorp chairperson Mohamad Salleh Ismail, as well as the couple’s three children – former CEO Wan Shahinur Izran and directors Wan Shahinur Izmir and Wan Izzana Fatimah Zabedah.

In not allowing the government’s full claim for RM253 million in the loans meant for the project, Anand ruled that there was no proof that the loans had been misused by the defendants.

“I find insufficient facts particularised to support such a plea (that the loan funds were fraudulently utilised and transferred). As seen earlier, I have found that the purchases of the properties were allowed and did not constitute a breach of the loan facility agreement (LFA).

“I find that the plaintiff (government) has failed to prove any form of dishonesty by the defendants,” Anand said.

The judge noted that there is no element of fraud in the transfer of the loan sums to NFCorp’s related firms.

He said that NFCorp could not be expected to undertake the entire massive project alone, but that some functions of the project could be delegated to the other related companies. – Malaysiakini