The National Feedlot Corporation (NFC) said today it will sue businessperson Shamsubahrin Ismail for claiming Prime Minister Najib Abdul Razak was out to cover-up for the company.

"Shamsubahrin had claimed, among others, a conspiracy citing Prime Minister Mohd Najib Abdul Razak and the government behind a move to protect NFC and its directors.

"As such, (NFC chairperson) Salleh Ismail will initiate legal action on the said former business consultant for the defamatory remarks and allegations made against them by the latter," NFC said in a statement today.

The company said the claims made by Shamsubahrin ( photo ) were "baseless and untenable".

NFC was in 2012 embroiled in controversy for the failed beef project in Negri Sembilan.

The company, which is owned by Umno Wanita chief Shahrizat Abdul Jalil's family, was accused of abusing a RM250 million government loan on luxury cars and properties instead of using it for the intended project.

Salleh, who is Shahrizat's husband, is currently facing criminal breach of trust charges.

Shamsubahrin, has also been also convicted of cheating NFC by the sessions court in Kuala Lumpur, which sentenced him to eight years in prison and four strokes of the rotan.

NFC said it is also initiating legal action to reclaim RM1.75 million from Shamsubahrin for failing to deliver on his consultancy services as promised to NFC.