NFCorp meets BNM over Rafizi

The company says it reported 21 violations of the Banking and Financial Institutions Act.

KUALA LUMPUR: National Feedlot Corporation (NFCorp) chairman Mohamad Salleh Ismail has provided Bank Negara with details of violations of the Banking and Financial Institutions Act (BAFIA) that he accuses PKR strategic director Rafizi Ramli of committing.

According to a NFCorp statement today, Salleh also complained to the central bank that Public Bank Bhd provided Rafizi with the credit rating and banking details of NFCorp, its related companies, and its directors and shareholders.

Salleh reported 21 counts of violations arising from Rafizi’s distribution of documents at a press conference on March 7.

“Rafizi, being a highly trained accountant and a member of the Institute of Chartered Accountants in England and Wales as well as the Malaysian Institute of Accountants, should have been familiar with the laws that prohibit public distribution of private and confidential banking documents,” the statement said.

Salleh said Rafizi had colluded with certain bank employees to violate the BAFIA when he obtained the internally generated documents. He criticised the bank for what he said was a breach of its own client charter, which promises security and privacy.

“We had earlier lodged a formal complaint to Public Bank on March 30, but it has failed to comply with our demands despite two correspondences with the bank and our lawyers,” NFCorp said.

NFCorp filed its first complaint with Bank Negara on March 30 and Salleh lodged a police report against Rafizi on April 26.

The penalty for violating Section 97(1) and (3) of the BAFIA is three years of imprisonment and a RM3 million fine.

NFCorp, its related companies and Salleh will also be filing a suit at the High Court against Rafizi for alleged defamation in his claim that Salleh had leveraged on NFCorp’s public funds to secure a loan for private investments.

During the March 7 press conference, Rafizi referred to two banking documents that he said showed eight properties in the luxurious KL Eco City had been used as collateral for bank loans.

Rafizi valued the eight properties at over RM12 million and has stood by his evidence even after the police report was lodged.

However, Salleh has denied purchasing the properties, accusing Rafizi of lying and creating public outrage for his political gain.

He said the bank offered him a loan for the purchase of the eight properties on May 23, 2011 but he declined.

“The bank then withdrew the loan offer and confirmed the cancellation in a written letter dated Jan 4, 2012,” Salleh said. “In short, no loans were ever taken up.”

Rafizi has also said that Salleh had constantly defaulted on his loan repayments for the properties, a claim that the NFCorp boss latter described as “baseless” since the loans were never taken.

“Rafizi’s statements are absolutely incorrect, defamatory and a lie,” Salleh said.