PARLIAMENT The federal government will cancel its contract with the National Feedlot Corporation (NFC) and subsequently take legal action against them over defaulted payments.

The Finance Ministry said in a written answer in Parliament that the NFC had failed to fulfill its progressive repayment of the government's RM250 million loan for the organisation for the year 2014, and had also failed to comply with subsequent demands to make the payment.

"The government will then cancel the agreement with NFC and will take legal action," the written answer said, in response to Khalid Samad (PAS-Shah Alam).

Over the past two years, NFC had paid RM34.98 million of the loan taken.

In the written answer, the government stated that the initial loan, with interest, was due to be paid back between 2012 and 2028.

 

NFC chairperson Mohamad Salleh Ismail ( right ) has been charged with two counts of Criminal Breach of Trust (CBT) over the NFC controversy in the past.

 

Salleh is the husband to former minister and current Wanita Umno chief Shahrizat Abdul Jalil.

 

Meanwhile, PKR's Pandan MP Rafizi Ramli said that the government must also pursue the RM50 million of interest payments on top of the RM250 million in soft loans handed out to the company.

 

"They must also pursue the annual interest, which over 16 years, works out to an extra RM50 million," he said.

'Opposition lies'

In response, NFC said that could not operate as all its assets and monies had been frozen following the opposition's "lies, distortions and misrepresenatations".

It said although the monies were later released to the Accountant-General, NFC cannot operate until it gets the seized assets and cash back.

Further, said in a statement, the suspension of the National Feedlot Project following the 2010 Auditor-General's report did not help matters.

It also reiterated that the prject did not proceed from the get go as the government had failed to fulfill the agreement by building an export quality abattoir.