He says the project didn't make any business sense.
PETALING JAYA: The former managing director of the now dormant A-Winn GMS Sdn Bhd has denied that the company’s top management pocketed the money lent for the Sendayan Valley vineyard project in Negeri Sembilan.
The loan is said to amount to more than RM4.9 million and the project has been abandoned.
“We never used the loan for other purposes; in fact, the government is now suing us for the return of the money,” said Azrul Nazim A Aziz, who managed A-Winn GMS when it was engaged in the project.
He told FMT that the failure of the project had nothing to do with any abuse of funds. “It was just not viable,” he said. “Growing grapes is an expensive affair and additional funding was required. The company suffered losses.”
The project, which commenced in 2010 on state-owned land situated about 70 km from Kuala Lumpur, was touted to be an agro-tourism haven and the country’s first vineyard that would attract local and foreign tourists.
But it did not make business sense, Azrul said. “We could harvest grapes only twice a year and in both seasons the vines died due to viral attacks and heavy winds and thunderstorms.
“We got help from the Thais, but that did not help too. We could not handle the setbacks given by mother nature.”
He said this was why the company needed to cease operations. “Income could not be generated, but expenses continued to rise.”
Negeri Sembilan Menteri Besar, Mohamad Hasan told FMT yesterday that the project was abandoned a long time ago.
According to a source who claimed to have been involved in the project at one stage, everything was going well until the loan was secured. He said the fruits were growing “perfectly” and visitors were allowed to taste them.
After the loan came in, however, “the trees weren’t maintained properly and the management refused to buy fertiliser and other necessities to keep them alive,” said the source, who spoke on condition of anonymity.
The source alleged that the company’s bosses spent the loan money on other purposes.
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