NFC boss claims rebates as revenue in cattle condo

November 18, 2011

KUALA LUMPUR, Nov 18 — Datuk Seri Dr Mohamed Salleh Ismail claimed as revenue today rebates on the price the National Feedlot Corporation (NFC) paid for two luxury Bangsar condominiums here to justify the cattle venture’s foray into property.

The NFC chairman, who is also the husband of Women, Family and Community development Minister Datuk Seri Shahrizat Jalil, told The Star newspaper that each unit at the One Menerung condominium complex was only rented out at RM18,000 a month.

The NFC first became embroiled in controversy when its operations made it into the pages of the Auditor-General’s Report for 2010. — file pic

Yesterday, he said that the rental yield was a whopping RM70,000 a month, and this claim was dismissed by property experts in the city as “unbelievable.”

The experts said that the highest rental that can be expected for even the penthouse at Bangsar’s One Menerung condominium is about RM24,000 per month.

In response, Mohamed Salleh claimed today in an interview with The Star that the NFC received a cash rebate each month for the units which cost RM6.9 million each.

The rebate, he said, amounted to RM57,000 a month, or RM684,000 a year. The amount is approximately 10 per cent of the declared value of each condo.

He said that coupled with the rental, the NFC received “revenue” of RM900,000 per unit a year.

Mohamed Salleh did not, however, explain the rationale for justifying the rebate as revenue, and neither did he say why NFC was receiving the rebates or for how long.

He has also been silent about whether the NFC — tasked with producing cattle — was allowed to use the funds it received as part of a RM250 million loan from the government to venture into property.

Earlier today Inspector-General of Police Tan Sri Ismail Omar confirmed the authorities were investigating the NFC for cheating or criminal breach of trust over its purchase of two luxury condominium units here using government funds.

A public complaint alleging corruption in the purchase of the multimillion ringgit property in Bangsar was first lodged with the Malaysian Anti-Corruption Commission (MACC) but the agency later passed the case to the Commercial Crimes Investigation Department (CCID) in Bukit Aman, saying the offence falls under the jurisdiction of the police.

The NFC first became embroiled in controversy when its operations made it into the pages of the Auditor-General’s Report for 2010.

The report, released last month, had criticised the RM250 million federally-funded cattle project, pointing out that it was now “in a mess”. It further said production in 2010 was only 3,289 head of cattle or 41.1 per cent of the target set.

Putrajaya has steadfastly defended the project since then but numerous exposes by PKR, including the controversial purchase of two units at Bangsar’s luxurious One Menerung condominium, forced the company to break its silence yesterday.