Couldn't do much as ‘typhoon’ of events hit NFC project - Salleh

National Feedlot Corporation (NFCorp) chairperson Mohamad Salleh Ismail lamented the rapid sequence of events akin to a “typhoon” that hampered the National Feedlot Centre (NFC) project.

He testified this during today’s court hearing of the government’s civil suit to recover RM253.6 million in loans given for the NFC project in Gemas, Negeri Sembilan.

“Everything happened very fast. In 2011, our accounts were frozen and we were trying to resolve it with Amla (Anti-Money Laundering Act authorities).

“Then came the seizure of the money in March 2012. Everything happened like a typhoon coming at us. We could not do much.

“I was also, on March 12, 2012, charged for CBT (criminal breach of trust) by the government,” Salleh (above) told the Kuala Lumpur High Court.

He was replying during cross-examination by senior federal counsel Nurhafizza Azizan, who represented the government - the plaintiff in the civil action.

Salleh - who is former women, family, and community development minister Shahrizat Abdul Jalil’s husband - and his three children, Wan Shahinur Izran, Wan Shahinur Izmir, and Wan Izzana Fatimah Zabedah, were named the first to fifth defendants, respectively.

The sixth to the 11th defendants are companies controlled by Salleh’s family - National Meat & Livestock Corporation Sdn Bhd, Real Food Corporation Sdn Bhd, Meatworks Corporation Sdn Bhd, Agroscience Industries Sdn Bhd, Asian Bioscience Corporation Sdn Bhd, and Technology Imageware (M) Sdn Bhd.

Yesterday, Bernama reported Salleh testifying that the RM253.6 million loan was unable to be repaid as the government did not provide the necessary infrastructure for the NFC project, such as failure to build the Export Quality Abattoir (EQA) to enable NFCorp to commence full production.

On March 12, 2012, before the Kuala Lumpur Sessions Court, Salleh claimed trial to four charges. However, on Nov 24, 2015, he was discharged and acquitted of the two CBT charges and two counts under the Companies Act 1965.

Salleh points finger at govt

During this afternoon’s hearing before trial judge Anand Ponnudurai, Salleh told the court that NFCorp, in 2007, wrote to the Agricultural Ministry for the government to build the EQA as it would take at least three years to build such a facility.

He testified that when the government did not reply, they wrote to the then-prime minister Abdullah Ahmad Badawi in 2008 asking about the EQA, and that matters worsened when the tender was suspended in 2009.

Salleh claimed that due to the government not building the EQA, the company was forced to build its own “mini-abattoir”, which was not up to the task to slaughter the required number of cattle a day for the project.

He claimed that, even though he was an administrator of a government project, and had raised concern over the non-suitability of a piece of land for said project, the government still did not take heed and proceeded to go ahead with that land in Negeri Sembilan.

Salleh also refuted the government legal team’s contention that it was the government rather than NFCorp that suffered loss over the endeavour, pointing out that the company has a RM86.6 million counterclaim against the government over losses from the project.

“That is not correct. I (as well as the other defendants) suffered losses and not the government.

“You (the government) seized the money. You suspended the project. You did not build the (EQA) abattoir, and I spent all my time over many years trying to make the project successful,” he contended.

Counsel K Kirubakaran acted for Salleh and the other defendants. The hearing before Anand will resume tomorrow.

Through the civil action, the government alleged that it signed a loan agreement of RM250 million with NFC on Dec 6, 2007, to finance the costs of establishing and operating NFC in Gemas as part of its policy to develop and increase beef production.

The loan was disbursed in three tranches and Salleh’s family was alleged to have made 10 withdrawals amounting to RM180.51 million from Jan 24, 2008, to Jan 3, 2011.

The project came into the public limelight following allegations raised by PKR deputy president Rafizi Ramli over the way that public funds were utilised for the project.

In April this year, the apex court allowed Rafizi’s appeal in the defamation suit against him by NFCorp, on grounds that he successfully raised the defence of fair comment.

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