The government is not likely to get its money back from the National Feedlot Corporation (NFC) even if it wins a legal suit against the latter, PKR director of strategy Rafizi Ramli said today.
This was because much of the NFC funds have been transferred to companies owned by its directors, who all come from one family, Rafizi said in a statement.
NFC is not asset rich and can later declare itself bankrupt if unable to return the loan to the govenrment, thereby leaving the government with no recourse, he said.
The government also has no say in the sister-companies, such as the National Meat and Livestock Company, which purchased luxury condominiums, since it only has a stake in NFC.
Instead, Rafizi said, the government should seek a personal guarantee from the NFC chairperson and directors, who are family-members of former minister Shahrizat Abdul Jalil.
'No seriousness in recouping loan'
This was because much of the NFC funds have been transferred to companies owned by its directors, who all come from one family, Rafizi said in a statement.
NFC is not asset rich and can later declare itself bankrupt if unable to return the loan to the govenrment, thereby leaving the government with no recourse, he said. The government also has no say in the sister-companies, such as the National Meat and Livestock Company, which purchased luxury condominiums, since it only has a stake in NFC.
Instead, Rafizi said, the government should seek a personal guarantee from the NFC chairperson and directors, who are family-members of former minister Shahrizat Abdul Jalil.
'No seriousness in recouping loan'
"PKR had earlier on urged the government to impose a personal guarantee on Shahrizat and her family so that all their assets... can be seized to recoup the soft loan that was abused," Rafizi said.
This included the luxury real estate properties purchased through the family-owned companies, "using NFC funds".
Rafizi was commenting on the Auditor-General's Report 2011 which notes that the government is mulling civil action against the company and to take back the soft loan disboursed to it.
He said that taking civil action also showed that the government was "not serious" about recouping the grant.
"(It) shows Prime Minister Najib Abdul Razak's attitude on the matter, that he is merely delaying taking action against NFC with the hope that the BN will win the next general election and the issue can be erased," he said.
The government gave NFC a soft loan of RM250 million to enable it to set up a feedlot centre, but only part of the loan has been disbursed.
Rafizi was commenting on the Auditor-General's Report 2011 which notes that the government is mulling civil action against the company and to take back the soft loan disboursed to it.
He said that taking civil action also showed that the government was "not serious" about recouping the grant.
"(It) shows Prime Minister Najib Abdul Razak's attitude on the matter, that he is merely delaying taking action against NFC with the hope that the BN will win the next general election and the issue can be erased," he said.
The government gave NFC a soft loan of RM250 million to enable it to set up a feedlot centre, but only part of the loan has been disbursed.
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