NFC: PKR to expose another improper asset acquisition, while DAP warns of fudged a/cs

PKR leaders have warned they will be exposing further assets scandals related to the RM250million NFC debacle involving Women's minister Shahrizat Jalil, who despite calls to step down has been given a reprieve by Prime Minister Najib Razak.

"It is never ending because there really is enough misdeeds to last two years," PRK strategy director Rafizi Ramli told Malaysia Chronicle.

He declined to give further details but said it involved an inappropriate asset acquisition. The press conference will be held at 3pm at the PKR headquarters in Tropicana on Wednesday, March 7th.

Also attending will be Nurul Izzah Anwar, the Lembah Pantai MP, and Zuraida Kamaruddin, the PKR Women's chief.

Broke regulations while Finance and Agriculture ministries closed an eye

Meanwhile, DAP MP for PJ Utara Tony Pua revealed that 3 companies owned by the NFC directors in their personal capacity have been dormant since 2007, without filing any audited accounts to the Registrar of Companies. Yet these three firms enjoyed funds transfusions from NFC, making the omissions an offense punishable by a fine of up to RM30,000 and/or 5 years jail.

The directors of NFC are, of course, members of Shahrizat's family including her husband, Salleh Ismail, and their three children. The 3 family-controlled firms are Meatworks Corporation Sdn Bhd (Meatworks), Real Food Company Sdn Bhd (RFC), and National Meat & Livestock Corporation (NMLC).

Tony also questioned why neither the Finance ministry nor the Agriculture ministry had asked for the audited reports of RFC and NMLC, as required under the conditions of the RM250million government soft loan extended to NFC to develop the national cattle breeding project.  Parts of the loan had been channeled to these 2 firms.

"Not only was the siphoning of funds to these companies owned by the directors of NFC a breach of trust, the directors were also negligent, intentionally or otherwise, in accounting for the use of the monies. The directors of NFC must answer as to why NMLC and RFC have never filed their accounts or even presented them to the Finance and Agriculture ministries as part of NFC’s loan agreement to provide updates on the use of the funds,” Tony told a press conference on Tuesday.

By now, more than RM100mil would have been siphoned off

Last Friday, Tony had revealed that NFC, as at 2009, had siphoned RM81.4 million from its company account to several private companies owned by the Shahrizats. He also accused the NFC of using the government loan for this purpose, and estimated the total amount ‘siphoned’ out would definitely have exceeded RM100 million by now.

NFC directors had rebutted similar allegations by insisting the family firms were “always meant to be subsidiaries of NFC” although they were not financially structured as such.

“There is no record on how they spend their money, nothing... this is a clear case that money from the government has been abused,” warned Tony, adding that since the accounts were not filed yet, the directors could backdate the reports of the three companies so to fudge the numbers and their own omissions.

He also took the Registrar of Companies to task, questioning why no action was taken against the directors for failing to comply with the Companies Act 1965. “Is it because they are big shots so they are allowed to continue for four-and-a-half years without filing accounts?” asked Tony.

Improper dealings

Indeed, there is more than meets the eye in the NFC scandal. The project was mooted by former premier Abdullah Badawi and his son-in-law Khairy Jamaluddin and officially awarded to the Shahrizat family to manager in 2006. The National Feedlot Centre is a project aimed to raise beef supply in the country so that Malaysia could supply at least 40% of its own needs.

However, the 2010 Auditor-General's report has pointed out fundamental "weaknesses" in the way the project was being managed. PKR leaders too have unveiled a slew of revelations showing that the Shahrizats had spent a chunk of the money meant for the project on luxury condos both in Kuala Lumpur and Singapore, expensive overseas holidays, up-market restaurants and a supermarket in Singapore.

Even Umno stalwarts like Mahathir Mohamad and Rafidah Aziz have publicly warned Shahrizat to quit so as not to tarnish Umno ahead of general elections expected to be held this year.

However, it is believed that Shahrizat, who is also the Wanita Umno chief, has struck a deal with Najib whereby he will be allowed to quit when her Senatorship expires next month. In return for her 'agreeing' to surrender her Cabinet position and not divulging the dark secrets of other Umno leaders, Najib is believed to have promised not to prosecute her family.

But critics warn that even if the Attorney General did charge Salleh Ismail for CBT, chances are he will be let off with a slap on the wrist, much like former Selangor chief minister Khir Toyo.

Malaysia Chronicle