Sunday, February 26, 2012
NFC: 'Related documents' permit condo purchase
The National Feedlot Corporation (NFC) has accused DAP national publicity secretary Tony Pua of selectively using facts in his criticism of the company, by failing to mention related documents that it said permitted its 'investments'.
“Tony Pua’s (right) statement that we had violated conditions of the loan agreement was clearly meant to mislead the public when providing the media with only a selective set of the facts,” said NFC in a statement.
“His accusations did not reflect the full details and true picture on the use of the loan approved by the government for the National Feedlot Centre programme,” the company further alleged.
Pua yesterday revealed the NFC loan agreement and said it made no provisions for the funds to be used for the purchase of properies.
NFC claimed that the loan agreement has to be read concurrently with the company’s memorandum and articles of association (M&A) and other related documents on MoF’s terms and conditions for the loan.
Its M&A, the firm argued, gave it the powers “to invest and deal with the money of the company not immediately required in such manner as may from time to time be thought fit.”
The matter, NFC claimed, is well known and accepted by the government, which had a preference share in the firm.
‘Condo purchase provided for’
NFC further claimed that the loan agreement provided for the monies to be used for purchase of landed properties, as long as there is a charge or assignment over such landed properties in favour of the lender, a fact it claimed Pua conveniently left out.
However the company did not say if luxury properties it bought with public funds in Malaysia and Singapore were assigned to the government as the lender.
It also did not addressallegations earlier this month that two luxury condominium purchases in Singapore worth RM34.6 million are registered under the names of federal minister Shahrizat Abdul Jalil's husband Mohd Salleh Ismail and his son and NFC executive director Wan Shahinur Izran Salleh.
NFC further explained that in the course of implementation, the project was brought on hold by the government pending further studies.
It was then, it said, that the company had found itself holding on to monies from public funds drawn for the project that it was unable to use, as operations were on hold because of the freeze.
It added that the funds were already drawing interest and cannot be returned to the special account.
“Rather than just placing the monies in money market instruments, it was deemed more prudent a business decision to invest in properties in the short-term.
“The intention to invest in properties was to hedge the funds in order to protect its value. Clearly this was not a dissipation of funds.”
Once the government freeze ended, NFC said it would dispose off its short-term investments in properties, the funds and profits readily available for company operations.
“The property market is sound and secure, more protected, and less volatile than others, and the investments could be liquidated when the company needs it for the implementation,” NFC said.
NFC's 35-page loan agreement document