Discounts, loans to NFC sister firms justified, say BN MPs

BN parliamentarians today defended the funds and discounts the National Feedlot Corporation (NFC) gave to its allied companies, saying the allocations were justified by its real scope of work.

Rebutting claims by the opposition, Rembau MP Khairy Jamaluddin said the RM81.2 million channelled to National Livestock & Meat Corporation (NLMC) Sdn Bhd and the RM3 million discount accorded to Real Food Company (RFC) Sdn Bhd, “served multiple objectives”, not just to process raw meat.

The opposition has been criticising the federal government's handling of the NFC, a multi-million ringgit cattle farm, after the Auditor-General’s Report 2010 reported it to be in “a mess”.

Agriculture and Agro-based Industries Ministry Noh Omar further defended the problematic project, owned and managed by Women, Welfare and Community Development Minister Shahrizat Abdul Jalil's family, calling it a “success”.

Since yesterday, Khairy had been making point-by-point rebuttals, and accused Pakatan Rakyat of frivolous attempts to discredit the government and taking cheap shots at Shahrizat.

Discounts reach distributors

Speaking to reporters in the Parliament lobby, Khairy said RFC, the sole distributor of beef from NFC, received discounts of RM3 million that was eventually passed down to the distribution network.

“Some of the buyers from RFC are hypermarkets such (hypermarkets) Jusco, Carrefour, Cold Storage and Giant, farmers markets, food and beverage industry and downstream food processing companies,” said Khairy.

Whereas as for the NLMC, the RM81.2 million loan, was not merely for the production of raw beef, but also for to open up market access, rearing infrastructure and for purchase cattle from satellite farms served by the NFC.

“At the same time it functions to improve logistics and the delivery mechanism for NFC, as a premier beef producer,” added Khairy.

Conflict of interests?

Yesterday, Khairy offered lengthy rebuttals at the opposition in the Dewan Rakyat during the Supply Bill 2012 committee stage debate, for its criticism against NFC.

In an immediate reaction, PKR secretary-general Saifuddin Nasution argued that Khairy response did not address the allegations but opened up a whole new can of worms.

“That is interesting information... which leave up with more questions that needs answers,” he said.

The Machang MP explained that this may lead to conflict of interest on how a company owned by the group director awards discounts and loans to another company, which they also own, as an action that may contravene provision fo the Companies Act 1965.