Without the RM71.4 million fixed deposit from the National Feedlot Corporation Sdn Bhd (NFC) obtained as government loan, its chairperson's loan application to purchase eight properties at KL Eco City Sdn Bhd would have scored a low rating, PKR vice-president Rafizi Ramli testified in court today.

Rafizi, who is a qualified chartered accountant and an auditor, told the High Court in Kuala Lumpur that NFC chairperson Mohamad Salleh Ismail would score the low rating based on three reasons.

“Salleh and his family had to fork out at least RM86,000 a month in repayment to Public Bank Bhd at that time (in 2012). His only employment was with the NFC which was not doing well financially, having registered RM11 million and RM7 million losses respectively in 2008 and 2009.

“Furthermore, the National Feedlot project was not meeting its targets and was behind schedule and Salleh's business ventures in Singapore were problematic,” he said.

The Pandan MP said he could professionally conclude that Public Bank's credit committee made the decision to offer financing for the eight KL Eco City properties despite Salleh's credit risk profile.

Rafizi, who was testifying in his defence in a defamation suit brought by Salleh and NFC, and replying to questions from Salleh's lawyer David Morais, said in his professional experience as an accountant and auditor, he estimated that Salleh would have to pay close to RM300,000 in loan repayments and personal expenditures a month.

As Salleh had already purchased two units of luxury condominium at One Menerung, Bangsar, one unit at Scotts Road, Singapore and two units at Marina Bay Sands, with the KL Eco-City project it would have a combined total mortgages of RM30 million, he added.

“My assessment, as I am in the financial sector myself, and the records of the properties and his historical payment records from the documents, it was fair for me to conclude even without having access (to all documents), he (Salleh) would have difficulty to pay the total mortgages he had by then,” Rafizi said to questions from his lawyer Razlan Hadri Zulkifli.

Throughout his testimony, he maintained that the RM71.4 million fixed deposit which NFC placed in the Public Bank was used as a leverage for Salleh to get loan for the KL Eco City properties.

Asked by Morais, Rafizi said he did not know at the time of the press conference on March 7, 2012 that the loan facility had already been withdrawn.

He explained that he got a bank statement in an envelope sent to his office from an anonymous source.

Rafizi then checked the document from a third source and from his experience as a former chief operating officer, he found the document to be genuine.

'I did not cause Salleh to be charged'

Responding to questions from Razlan, Rafizi disagreed that he was the cause for Salleh to be charged in court, as a result of the March 7, 2012 press conference, and further testified that he was not in a position to influence the prosecution on any case as it was the prerogative of the attorney-general to prosecute.

Razlan: Salleh claimed that because of the statement Shahrizat was dropped as a cabinet minister.

Rafizi: I disagree as once again the appointment of a cabinet minister is the sole prerogative of the prime minister. I have no influence over that as well.

Razlan: Salleh claimed that NFC and its companies like National Meat and Livestock Sdn Bhd faced losses.

Rafizi: I disagree because the financial records in 2008 and 2009 registered losses way before I made any of my statements (in 2011 and 2012).

Razlan: He alleged that the government stopped the NFC project.

Rafizi: I disagree as parliamentary records has shown the feedlot project was raised earlier than 2010. Decision to appoint the consultant was decided by ministry before I made the statement in 2011.

Razlan: Salleh alleged that your statement had caused RM86 million to be seized by the government?

Rafizi: I have to disagree as the precursor to the government response was because of the Auditor-General's report which questioned the progress of the project. My statement would in no way influence the PM or government to take such action.

Salleh had testified on Monday that a total of RM86 million was seized from fixed deposits which the company placed in three banks.

Eventually, charges against Salleh for criminal breach of trust was withdrawn.

To a question from Morais that he may have known of the loan withdrawal but did not disclose it to the media on March 7, 2012, Rafizi asked why would he withhold such information.

"Why would I? I would have to go to jail and already I am faced with six charges. No one in their right mind would do it but when you know it is under the Bank and Financial Institution Act, if I had the evidence I would be fried.

“On that perspective, and presented with this, I genuinely believed that based on the record that the loan was in existence, and the loan was finally withdrawn, the key question was the fixed deposit used as leverage to approve the loan,” he said.

Besides suing Rafizi, NFC is also suing Mkini Dotcom Sdn Bhd, the operators of Malaysiakini.

Mkini was represented by counsel K Shanmuga.

The hearing continues before judicial commissioner Azizul Azmi Adnan on Monday at 11am.