Court gives govt, NFC ‘final chance’ to settle suit

 

National Feedlot Corporation, its chairman Mohamad Salleh Ismail, his three children and six companies are being sued for RM253.62 million by the government.

KUALA LUMPUR: The High Court has given Putrajaya and National Feedlot Corporation (NFC) one final chance to settle a suit for the government to recover about RM250 million in loan payments and interest from the company.

Judge Anand Ponnudurai has tentatively fixed trial to resume on Nov 7 after allowing an application by NFC lawyer K Kirubakaran to adjourn the matter.

“I will give the parties a final chance to settle the matter or else the trial will resume,” the judge said.

Earlier, Kirubakaran sought an adjournment, saying the parties were in further negotiation for a settlement.

“The parties have had many meetings as they involve many stakeholders and need more time to reach an agreement,” he said.

Senior federal counsel Asliza Ali confirmed that parties were in an advanced stage of discussion.

“Any settlement also needs the Cabinet’s approval,” she said.

In January, Anand had adjourned proceedings for the parties to settle the suit without contest or else the trial would continue today.

FMT reported early this year that NFC and others had sent a letter to the Attorney-General’s Chambers for “a global settlement”.

NFC, its chairman Mohamad Salleh Ismail, who is also the husband of former Wanita Umno chief Shahrizat Abdul Jalil, their three children and six companies owned by the family were named the defendants in the suit, filed in June 2019.

The total of RM253.62 million claimed against NFC and Salleh’s family represents the sum owed to the government, together with interest at 2% per annum and default interest on RM224.77 million.

Putrajaya is also seeking a declaration to hold Salleh’s family personally liable for the debt repayment of RM118.04 million allegedly misappropriated from the loan.

It said it is also entitled to claim equitable titles to the properties bought using NFC’s RM250 million loan from the government.

In 2007, the government approved a RM250 million loan to NFC to turn the local cattle industry into a large-scale business with the aim of helping Malaysia become self-sufficient in beef production.

In its defence, NFC said the repayment of the loan was very much dependent on the government making available the necessary infrastructure, including the export quality abattoir in Gemas, Negeri Sembilan.

It said the government never did that and instead the project was suspended.

Further, whatever property invested or purchased from part of the loan sum was also seized, NFC added. - FMT