Azmi should step down as PAC Chairman if he is not prepared to convene emergency PAC meeting to investigate into propriety of RM250 million government loan to NFCorp so as to be able to report to Parliament next month


My statement on January 24 calling on Datuk Seri Azmi Khalid to resign as Parliamentary Public Accounts Committee (PAC) Chairman if he is not prepared to convene an emergency PAC meeting to investigate into the RM330 million National Feedlot Centre/National Feedlot Corporation (NFC/NFCorp) “cattle condo” scandal so as to be able to report to Parliament next month has been vindcated by none other than the NFCorp chief executive officer Wan Shahinur Izmir Salleh.

Wan Shahinur Izran came out with a most shocking assertion yesterday when he said in a statement:

“The issue of NFC managing its loan monies amounting to RM250 million is the company’s responsibility to administer and utilise. NFC retains the prerogative to invest the funds in the best interests of the company.”

Can this shocking claim be true, that NFCorp has been given a completely blank cheque to do what it likes with the RM250 million loan from the Finance Ministry although completely unrelated to the “high impact” NFC economic project to promote beef self-sufficiency in the country?

If true, then the “political masters” responsible for this decision at the relevant time, whether Tun Abdullah, who was the Prime Minister when the project and loan was approved, Datuk Seri Najib Razak, the Chairman of the Cabinet Committee on “High Impact Projects” or Tan Sri Muhyiddin Yasin the Minister for Agriculture and Agro-Based Industries should be hauled up before the PAC for the whole truth to be told.

If untrue, it is the responsibility of PAC to get to the bottom of the matter and report to Parliament when it reconvenes on March 12.

An emergency meeting of PAC is all the more imperative now as PAC member and MP for PJ Utara, Tony Pua in his statement today said PAC at its meeting in November had been told by the Finance Ministry that there was no provision that permits the NFCorp to use its federal loan to purchase property.

As a senior Ministry of Finance official had been “very specific” informing the PAC that the NFC loan could not be used for purposes other than what had been specified, that the purpose of each drawdown must be clearly stated and that the ministry had never received an application from NFCorp to purchase property, PAC must be convened to have sight and verify of the RM250 million loan agreement and the relevant documentation so as to be able to submit an accurate and satisfactory report on the issue to Parliament by March 12.

Azmi should decide whether he is going to discharge his duty as PAC Chairman to conduct a proper investigation into the RM330 million “cattle condo” scandal so that a PAC report on the issue could be presented to all MPs to assist in the parliamentary debate on the matter, or whether he would step down as PAC Chairman to allow the PAC Deputy Chairman, Dr. Tan Seng Giaw (MP for Kepong) to carry on the investigations affecting the Minister for Women, Family and Community Development, Datuk Seri Shahrizat Abdul Jalil and her family without any impediment.

There may be reasons why Wan Shahinur Ismir is so courageous in claiming that it is the “prerogative” of NFCorp to “invest the funds in the best interests of the company” to the extent that NFCorp posted this claim on my twitter last night – the first day NFCorp went on an “offensive” on the social media.

I had responded on my twitter to NFCorp last night with Five Questions on the RM330 million “cattle condo” scandal, viz:

1. Do you admit to public responsibility? Make public loan agreement to prove you can do what you like with NFC loan.

2. You deny Shahrizat family members paid princely sum of RM215k monthly. Specify actual salaries/perks drawn by each member monthly.

3. What is your response to each one of allegations re luxury condos, land, family holidays expenses and credit card payments. Why evade?

4. Do you agree you have plunged Najib govt to 2new credibility crisis? Would you fully support a Royal Commission of Inquiry into NFC?

5. Does “prerogative to invest in e best interests of the company” include the right to trample on public/national interests?

I believe all Malaysians, and not just myself, are waiting for answers from NFCorp to these five questions on the “cattle condo” scandal.

If the NFCorp continuse to evade these five questions, then let the PAC provide some answers when Parliament reconvenes on March 12.
Lim Kit Siang

  1. #1 by yhsiew on Friday, 10 February 2012 - 1:26 pm

    ///If true, then the “political masters” responsible for this decision at the relevant time……..should be hauled up before the PAC for the whole truth to be told.///

    It is a norm in Bolihland that high-profile figures are licensed to break the law with impunity.

  2. #2 by Godfather on Friday, 10 February 2012 - 1:28 pm

    Kit: You should ask Azmi this straightforward question – were you at any time a beneficiary of NFCorp generosity such as having trips, presents, accomodation all paid for ? Did you or your family stay at the various condos in Bangsar and Singapore ?

  3. #3 by Godfather on Friday, 10 February 2012 - 1:32 pm

    I mean, if Shahzrizat’s family had the “good” sense to buy a Birkin handbag for Rosie and charge the cost to NFCorp, then what is Najib going to say ? “Rosie dear, please return the Birkin handbag to Shahrizat because it was bought with public funds” ?

  4. #4 by SENGLANG on Friday, 10 February 2012 - 2:45 pm

    Today the son of the PHD Dr. argued further that there was no prohibitive clause in the loan agreement that the excess fund from the loan can not be used for investment in property. He further argued that investment in property is a safe and secure investment.

    Let be focus on the real issue. The fund of 250million is a soft loan from government and it offer very low rate of interest and best no personal guarantee. The loan was for one and no other purpose ie feedlot business.

    Now the fund is in temporary not in use for its original purpose. Anyone with a basis of financial management will tell you the only way of putting this temporary unused excess fund is place as Fixed Deposits with licensed financial institutions like banks. The reason is simple, FD is readily turn into ready cash when the fund is needed immediately for its original purposes.

    Real estate property investment can not be one that can guarantee a profit return. Many properties have been turn sour and incurred losses. Further real estate can not readily turn into cash and to disposed a property take months if not years. Even on force sell it also take months to complete.

    The real reason that the investment in the condominiums was clearly not just to temporary set aside the temporary unused excess fund, it was clearly just used the fund for its intend purpose of investment in real estate. Thus the decision has deviate from the original purpose of funding from the government soft loan. While it is difficult to say at this moment those involve have misused the fund but it is clearly has deviate from its main original purposes.

    It was easy to place the fund in real estate and get rental income but it was not an easy to run a feedlot business, it is dirty and smelly jobs. Those people are not farmers they are elites and was educated overseas. They will never have think of working in cowlang environment.

    Those involved are clearly have bad intention and use the fund other than its original intend use. They is no way out but to press charge on them.

    Politically and morally the Minister has no excuse and just can’t say excuse me, excuse me and let off the hook. Resignation is the only way out.

  5. #5 by monsterball on Friday, 10 February 2012 - 5:39 pm

    No matter what sort of meetings..opinions…decisions made concerning NFC…by who…even an RCI…they all will be ignored if UMNO b decision makers feel it will bring down some of their political leaders to be investigated for corruptions…. along with Shahrizat.
    That is worst than loosing the more votes to PR.

  6. #6 by Cinapek on Friday, 10 February 2012 - 6:32 pm

    CEO of NFC said….

    “The issue of NFC managing its loan monies amounting to RM250 million is the company’s responsibility to administer and utilise. NFC retains the prerogative to invest the funds in the best interests of the company.”

    This appears to be NFC showing the middle finger to Muhyuddin. Because, if the monies can be used by NFC in any way they like, why bother to send in independent auditors to check as Muhyuddin had claimed?

    And is this young CEO also claiming that the Govt handed RM250m to NFC without any conditions on how the money is to be spent? If this is true, someone in the Govt decision making process better get their head examined. There are schoolchildren in the hinterland of Sarawak and Sabah staying in discrepit hostels that have been known to collapse killing or hurting them and here we have the Govt dispensing RM250m to a bunch of people with little or no knowledge of cattle farming to do as they like with the money?

    What is this country coming to?

  7. #7 by boh-liao on Saturday, 11 February 2012 - 3:34 am

    Dis 1M’sia VERY GENEROUS, citizens can apply 4 soft loans; when successful, CAN use d funds in d best interests of d company, REALLY SYIOK 1
    CAN buy condos, jiak hong, take a few ObWives, produce like rabbits (productif what), nothing wrong 1, some more got ppl who strongly support what
    Man, dis is PARADISE not lost 1, man

  8. #8 by boh-liao on Saturday, 11 February 2012 - 6:50 pm

    In Manila, a port clerk, earning 10K pesos a month, owns a Porsche worth abt 5 million pesos; wonder if we hv similar cases here, hving expensif cars n luxury condo units

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