Apart from acting against the National Feedlot Corporation (NFC) and sealing its assets, the government was also urged to launch an offensive against other loan defaulters.

Transparency International-Malaysia (TI-M) said this must be done to change the perception that the government tends to be soft towards large borrowers.

“We urge the government to publish a list of borrowers online on their status, amount borrowed, progress and loan repayment so the public are aware. This would boost transparency and accountability,” said TI-M in a statement today.

TI-M had earlier urged the government to pursue legal proceedings against NFC chairman Mohamad Salleh Ismail ( left ), who pleaded not guilty in March last year to two counts of criminal breach of trust.

They involved some RM49.7 million, with regards to the purchase of two condominium units and two other charges under the Companies Act.

The government had yesterday announced that it will cancel its contract with NFC and will take legal action against it over defaulted payments.

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

Meanwhile, TI-M then recommended the Finance Ministry to draw a standardised and transparent guideline in relation to disbursement of soft loans for government projects.

“Clear criteria should be given on soft loans granted to companies for government projects.”

It added the government should also conduct a thorough integrity, due diligence and risk analysis before approving any loan when selecting the competence of companies to handle the particular project.

"This includes the financial and technical aspect as well as experience.

“The companies must have strong, internal control policies which will ensure compliance with internal code of ethics, applicable laws, policies and procedures.”

TI-M also proposed that all politicians and civil servants declare their interest if any of their immediate family members were granted government soft loans.

“To prevent further loss, section 23 of MACC Act 2009 must be amended.  Failure to take such steps mentioned will be a great travesty to the Malaysian taxpayers.”

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