Rafizi dares Khairy to debate on NFC

The PKR leader says it’s “crazy” to invest in luxury condos under current market conditions.

KUALA LUMPUR: PKR strategic director Rafizi Ramli today challenged Umno Youth chief Khairy Jamaluddin to an open debate on alleged misuse of funds by the National Feedlot Centre (NFC).

Rafizi rejected Khairy’s argument that NFC’s RM10 million investment in a luxury condominium was a strategic move, calling it instead a “crazy” and “bizarre” decision in the context of a soft property market.

“I don’t think I’ve heard of a move to invest in a luxury condo as a short-term investment, especially in a soft market,” he told reporters covering Parliament. “It’s crazy, it’s bizarre.”

He said he was prepared to debate with Khairy “anywhere and anytime”.

Khairy last week defended the purchase of the condominium in upmarket Bangsar as a strategic investment.

The National Meat and Livestock Corporation (NLMC) bought it with money it borrowed from NFC. Both NLMC and NFC are operated by the family of Shahrizat Abdul Jalil, the Women’s Affairs and Family and Community Development minister.

Khairy said the condo had appreciated in value since it was purchased, but Rafizi cited the view of industry experts that Kuala Lumpur was facing a glut in luxury property.

Rental yields are said to have fallen by as much as 50%.

According to the PKR leader, the Valuation and Property Services Department (JPPH) indicated that 66,328 luxury condominiums remained unsold at the end of 2010. JPPH also said there were no buyers for 20% of condominiums costing RM1 million or more that were built in the third quarter of this year.

“International real estate experts DTZ Research also said on Nov 10 that ‘the risk of falling prices for luxury properties will continue to increase’ and ‘the oversupply of luxury properties will lower rental yields’,” Rafizi said.

“So what kind of yields is Khairy talking about?”

A messy project

In his report that was released last month, the Auditor-General described the NFC project as a “mess” and noted that it produced only 3,289 heads of cattle in 2010, meeting only 41.1% of its target set.

But Agriculture Minister Noh Omar said the project was a success, given that NFC had acquired 8,016 heads of cattle between 2008 and 2010.

According to Noh, RM256 million was earmarked for the NFC project and placed in a special loan account that was under strict monitoring by the Finance Ministry.

He said only RM181 million had been disbursed to NFC. However, PKR, citing NFC’s financial report, said the centre withdrew RM130 million in 2008 and RM120 million on March 31, 2009.

Shahrizat said Noh’s statement was enough to clear the air. She said the allegations against NFC were aimed at “destroying” Wanita Umno, which she heads.