National Feedlot Corporation Sdn Bhd (NFC) chairperson Mohamad Salleh Ismail today revealed that RM86 million of fixed deposits from the RM250 million loan had been seized by the government.

He blamed the seizure of the amount held in the accounts at CIMB Bank, Maybank and Public Bank on Pandan MP Rafizi Ramli's expose over the Public Bank accounts on March 7, 2012.

Salleh is testifying in his defamation suit against Rafizi and Mkini Dotcom Sdn Bhd.

This is over Rafizi's disclosure of NFC's deposits being used as collateral to purchase a condo at KL Eco City in Bangsar. However, in the end, NFC did not take up the loan from Public Bank for the purchase.

Answering questions from counsel Ranjit Singh for Rafizi, Salleh said some of the cash were returned to the company after March 7, 2012.

"Our fixed deposits of RM86 million in CIMB Bank, Maybank and Public Bank had been seized as a result of the statement by the opposition. This loan was taken by the NFC," he said.

Ranjit : Is the seizure of assets due to my client's expose of the Public Bank accounts?

Salleh : Yes.

Ranjit : How much were seized?

Salleh : RM86 million.

Ranjit : Was the seizure due to some purchases of condominiums including the one in One Menerung, Bangsar?

Salleh : No relation.

The NFC boss maintained that Rafizi was the main reason for the company's losses and the source of its problems where it was claimed that the company was related to (Umno Wanita chief) Shahrizat Abdul Jalil's family company.

"However, as you can see, Shahrizat does not own any shares in the NFC or other companies. That is how damaging your client was (on us)," he said.

Ranjit: Would you agree that the NFC project itself received serious criticism from BN and the opposition?

Salleh: Only the opposition.

Ranjit: Some BN senior members were critical, including Bung Moktar Raden (Kinabatangan MP) and Tun Dr Mahathir Mohamad (photo), along with Ghapur Salleh (Kalabakan MP), Syed Ali Syed Alhabshee (Cheras Umno division chief) and Kamilia (Ibrahim) (Shahrizat's former deputy).

Salleh: It was when the opposition raised the RM73.6 million loan to NFC from the Agriculture Ministry and related that to my wife saying that was Shahrizat's family company. They continued to attack Shahrizat. This is not about my wife. This business belongs to my company and my family. I explained it to Mahathir that Shahrizat had nothing to do with it and he accepted it and he never commented further. Syed Ali later apologised. If Rafizi wants to attack me, attack me today.

Ranjit: If you look at the comments made by Syed Ali, Bung Moktar, Rafidah Aziz and Kamilia, all these people were critical of the NFC issue.

Salleh: This is a manipulation by your client, what the auditor-general commented was not on NFC but the National Feedlot project.

Ranjit: Do you agree a lot of the criticisms were because of certain allegations of money from government loan channelled into National Meatwork Livestock Corporation, used to buy the condominium in One Menerung or elsewhere?

Salleh: That is how damaging your client had been. Many people who have been duped by your client say they linked this to my wife.

As the witness continued to point his fingers at Rafizi as the cause of this on March 2012, Ranjit pointed to all the statements made by BN leaders prior to March 2012, including the ones made by Bung Moktar (Nov 24 and Dec 3, 2011), Mahathir (Dec 9, 2011), Syed Ali (Dec 5, 2011) and Ghapur (Dec 11, 2011).

Ranjit: I put it to you that, if at all, my client's expose of your Public Bank account has nothing to do with the project's failure.

Salleh: That is completely wrong.

Modern abattoir not built since 2010

The NFC boss also revealed that the government did not commit on its promise to complete the construction of an export quality abattoir complete with refrigeration facilities, and this hindered the production of beef.

“The modern abattoir was supposed to be completed by 2010. However, till today, it is not completed,” he explained, adding that this has created hindrance to his business.

As a result of this, Salleh said his company had to build a temporary abattoir and expanded the facility to cater to the rising demand.

However, he added, it could not fulfill its target as stated in the 2011 auditor-general's report.

The report noted that it targeted to produce 8,000 cattle in 2010 are slaughtered but only 5,542 were slaughtered, and the company's failure to implement the entrepreneurial development program (EDP) or the satellite program.

However, Salleh replied to Ranjit that the government's delay in constructing the ultra modern abattoir was partly to be blamed as it does not have the facility to store processed beef.

“I cannot implement the EDP program without the abattoir,” he maintained.

Quizzed by lawyer K Shanmuga for Mkini, Salleh admitted that the news portal did obtain NFC's response over Rafizi's allegation through a press release issued by a public relations firm hired by the company.

He also admitted that he did not hold any press conference between March 7 to June 26, 2012 when a letter of demand was issued to Mkini as he had no time and was tied up with answering police queries following reports lodged against him.

Salleh further testified that he never authorised Public Bank or KL Eco City to issue documents regarding the purchase and agreed that there was no way for any media organisation to get his response.

During re-examination by his counsel David Morais, Salleh admitted that the freezing of the funds had affected his business of buying more cattle.

He said the cattle he had in 2012 were the ones bought in 2011 and following the Public Bank expose, his money was seized.

“I sold cattle for six months after that and there were no more stocks after the disclosure made on March 7. My business actually collapsed (as a result of the freeze),” he said, adding that the auditor-general report mainly touched on the government project for the National Feedlot, not the NFC.

The hearing continues before judicial commissioner Azizul Azmi Adnan on Thursday afternoon when a new witness will be called to the stand.