Bank manager agrees NFC's fixed deposit a factor for recommending loan

A business manager of Public Bank Bhd testified at the High Court in Kuala Lumpur today that the fixed deposit of RM71.3 million, deposited by National Feedlot Corporation Sdn Bhd (NFC)- affiliated companies, was a factor for the bank to recommend a loan for the purchase of eight units of condominiums at KL Eco-City project.

Chai Ma Fatt, 49, when cross-examined by PKR vice-president Rafizi Ramli's lawyer Razlan Hadri Zulkifli, admitted that the fixed deposit by NFC companies was one of the biggest ever received by its Hang Lekiu branch at that time between 2011 and 2012.

He said that his branch merely recommended the loan and that the decision for approval was given by the headquarters.

The witness agreed that NFC chairperson Mohamad Salleh Ismail and his son were the directors of National Meat and Livestock Sdn Bhd and Agroscience Industries Sdn Bhd, who hold accounts including the fixed deposit with the bank.

Razlan: Do you know when an application (for loan) is awarded or not?

Chai: Approval is done by higher management.

Razlan: Are you in higher management?

Chai: No, I am in marketing management.

Razlan: The amount of fixed deposit would be one of the biggest in your branch?

Chai: Yes.

The Public Bank officer was testifying in the NFC and its chairperson Mohamad Salleh Ismail's defamation suit against Rafizi and Mkini Dotcom Sdn Bhd, the operator of news portal Malaysiakini.

On Tuesday, Salleh, when cross-examined, agreed that a total of RM86 million had been seized by the government from three banks including Public Bank.

The RM71.3 million was part of the grant offered by the Agriculture Ministry to the company to undertake the National Feedlot project.

Chai agreed the loan was given between May 2011 and January 2012.

The witness also agreed that it was a bit unusual for the loan offer being given for seven months but this was considered on a case-by-case basis.

The total loan offered was for RM9.685 million for the eight units.

However, he said it was not utilised and was withdrawn after eight months.

Razlan also asked the witness how much Salleh had in his savings and current accounts sometime in February 2012, to which the latter replied it was slightly above RM420.

Earlier, when asked by NFC lawyer David Morais, Chai agreed that despite Rafizi claiming he obtained verification from the bank about the state of affairs of NFC's accounts as stated in his press conference and statement, Chai denied that his bank did so.

Morais: Rafizi said in his statement that he verified (this state of affairs) in relation to this account with the bank. Are you aware of this?

Chai: Not aware.

This led to an objection by Public Bank's counsel that Rafizi did not state in his statement from which bank.

When asked by Malaysiakini lawyer K Shanmuga whether the bank would disclose to reporters when asked about the offer, Chai replied he would not.

The hearing continues tomorrow before Judicial Commissioner Azizul Azmi Adnan with Rafizi taking the stand. -Mkini