NFC buyout includes assuming RM250m debt, says chairman Salleh

Mohd Salleh (centre) with his lawyers at the press conference held at his family-owned Meatworks restaurnt in KL today. The Malaysian Insider pic by Najjua Zulkefli, July 25, 2013.Malaysian-Japanese joint-venture Kirimitonas Agro Sdn Bhd (KASB) must agree to take over the RM250 million government loan when buying the federal cattle-farming project, operator National Feedlot Corporation (NFC) said today.

NFC chairman Datuk Seri Dr Mohamad Salleh Ismail said the joint-venture has agreed to the terms although Finance Minister II Datuk Seri Ahmad Husni Hanadzlah said two weeks ago no decision has been made.

“KASB has agreed to undertake the full repayment of the government loan,” Salleh told a press conference at his family-run steak restaurant Meatworks in Kuala Lumpur today.

Salleh is now facing charges with  criminal breach of trust of RM47.3 million for misappropriating NFC funds to buy luxury condominiums and land.

The scandal broke when the Auditor-General's Report 2011 found the project did not meet its milestones while a whistle-blower said the funds were abused to buy property.

On July 9, PKR strategist and Pandan MP Rafizi Ramli said the takeover by KASB would not involve the debt owing to the government. He said that the government would stand to lose as much as RM163 million if the deal went through.

Rafizi said today that NFC was not in a position to enter into the agreement as it was a government project.

“The loan was advanced by the government and the land in Gemas where the project is  located belongs to the government so it’s for the government to decide on the project.

"Two weeks ago, I had asked Finance Minister II, Datuk Seri Husni Hanadzlah in Parliament about the issue and he had replied that the government had made no decision on the takeover, so NFC has no authority to pre-empt the government on this,” Rafizi told The Malaysian Insider today.

The NFC issue also cost Salleh’s wife, Wanita Umno chief Datuk Seri Shahrizat Jalil her Cabinet post last year.

Salleh said today that the Malaysian Anti-Corruption Commission (MACC)  had cleared his wife last December of any wrongdoing and that she should not be connected in anyway to the NFC scandal.

Shahrizat is to defend her position in the upcoming Umno party polls this October 10.

KASB is a  60:40 joint venture company between Otoshitos Sdn Bhd and Japan’s Hannan Food Company. Hannan is Japan’s second largest cattle operator specialising in the production of ‘waghyu’ beef.

The conditional sales and purchase agreement between NFC and KASB must get the approval of the Ministry of Finance, Ministry of Agriculture and  Attorney-General. The agreement is expected to be concluded by this October.