NFCorp directors in the dark

R. Nadeswaran
[email protected]
23 February 2012

KUALA LUMPUR (Feb 23, 2012): The National Feedlot Corporation (NFCorp) bought luxury condominiums without the approval of the board of directors. Three government representatives who sit on the board were not consulted or told about the purchase.

Alias Mohd Yassin and Manaf Hussein represented the Agriculture and Finance Ministries respectively while Datuk Mat Ali Hassan was appointed by virtue of him being the Negri Sembilan state secretary.

These appointments were made to “safeguard the interests of the federal government and stakeholders and the state government as it provided the land.”

“At no time were these directors told of the purchase of the condominiums and other so-called investments and neither were they aware of it until the matter was reported in the media,” a source close to the investigations said.

It is a statutory requirement that the board approve any “investment” through a resolution.

The government representatives, the source said, were kept totally in the dark although they attended the board meetings regularly. They were not updated on the drawdown of funds from the RM250 million soft loan provided by the government.

The investigations also revealed that each of the government representatives were paid directors’ and meeting allowances of RM700 each month.

As for the massive sums allegedly paid as salaries and perks to other directors, investigations showed that such emoluments and day-to-day affairs and management were left in the hands of the CEO Wan Shahinur Izmir Mohamed Salleh, who is the son of Women, Family and Community Development Minister Datuk Seri Shahrizat Abdul Jalil.

The government-appointed directors had no say on such matters.

Two weeks ago, Wan Shahinur Izmir claimed the loan agreement did not stipulate any express prohibitions on investments and insinuated that the company could do what it deemed fit with the loan. However, this may not be correct in its entirety as any movement of money or major decisions had to be approved by the board of directors.

According to the investigators, documents that were seized from the company showed that no such resolution was proposed or passed during board meetings. Investigations are expected to be wrapped up in the next few days.

In December 2007, the government had approved a RM250 million soft loan to enable the NFCorp to start a feedlot centre in Gemas, Negri Sembilan. The corporation’s executive chairman, Datuk Seri Dr Mohamed Salleh Ismail is Shahrizat’s husband, and their children are on the board of directors.

The NFCorp controversy unfolded after the 2010 Auditor-General’s Report said the RM250 million National Feedlot Centre cattle breeding project which it runs had not met the targets set by the government.

Following this, allegations that the company had misused some of the money from the loan to purchase condominiums in Bangsar and property in Putrajaya surfaced, and reports were lodged with the Malaysian Anti-Corruption Commission and the police.

Shahrizat, who has come under pressure to resign over the case, applied for three weeks’ leave from her ministerial duties last month to “allow investigations into the NFCorp to be completed”. She has since resumed her duties.

On Feb 8, she was summoned by MACC to give her statement.

Deputy Prime Minister Tan Sri Muhyiddin Yassin announced last month that it would appoint an auditor to scrutinise NFCorp’s books in light of accusations made against the company, but dismissed calls for a royal commission of inquiry into the NFC.

  1. #1 by SENGLANG on Thursday, 23 February 2012 - 1:10 pm

    Why people getting angry by the days? Have ever any of the components parties reflect on this?

    The GM of PKFZ say she did not understand what is cash flow and what is Profit and Loss statement? She may be telling the truth as she did not not have to understand all these not her fields, but does this mean she was not responsible? Can she as GM of such a big corporation by deny responsibility but saying she did not know this and that? That was the issue, the issue is hand it as GM she must take responsibility on what is going on. That call responsibility. If she is responsible she is at liberty to consult people who know. That the point.

    So issue can the directors appointed by the treasury discharge their duties and responsibility by saying that they were in the dark and was not told on the investment? Was it not the fund is being deposited into a special account and any withdrawal must meet its pre set criteria before release for its use. Or are they have been convinced or believe that the cows really need a condo to live or mistaken a condo is kandang lembu?

    All above are not true? Right? so what next? Yes is the attitude. It is the believe since the family is from a minister family it is best not to ask too much? It is best to close their eyes and say nothing. It is also why the minister when ask to go MACC to give her statement that she was given a warm welcome by hand shake? Will MACC boss give all those go to give their statement a warm welcome and hand shake?
    So it is because she was a minister?

    So it must because those involved are related to a minister so the directors who suppose to sit on the board to make sure the loan was use for its intend purpose chose to close their both eyes and rightly say they are in the dark?

    If not how can you explain?

    CSL ask the people not be too angry. But can he tell us how no to get angry if things happen and keep happening?

    This was also why the people at large get so angry with the woman call “TOH CEI CEH” tarik kereta.

  2. #2 by cseng on Thursday, 23 February 2012 - 1:26 pm

    So, Umno think they can improve our cow farming thru NFC. They also think they can improve ship building thru Naval dockyard and Bousted. The same goes to Perwaja steel and many others.

    Maybe they think this is NEP, to develop local bumiputra expertise, this is noble, whatever cost it takes, is justified. Before this lost decade, M’sia gone thru many economy capitals, 60-70 commodity capital, tayccon were made from work hard in this capital, 80-90, construction/man-made capital, tycoon made from this sector. The lost decade, is political capital, tycoon coming from close link of powerful politician, they are the expert of whatever sectors government is spending.

    If we can throw in money and develop a business entity without much regulating and monitoring, there would be no poor country in this world. Worst still the management entrusted has no clue or idea about the business. Utilizing magician expertise to manage a zoo is stupid.

  3. #3 by SENGLANG on Thursday, 23 February 2012 - 1:59 pm

    That go back a bit to history, in PKFZ external auditors also call in to perform an audits. This only make the auditors happy and their auditor’s staffs crying (most of the audit staffs will need to burn the mid-night oil to complete the report) as millions are paid for that exercise.

    The same delay tactic is being call here for NFC, more tax payer money is needed. For what purpose?

    The ex commercial cop has say he can solve the issue with hours why need external auditors?

    We have world class of police force in all fields, criminal or commercial crime, it is a matter want them to do the right investigation or not.

    It is all wayang kulit and delay tactic. Simply pushing here and there and playing world class football

  4. #4 by Bigjoe on Thursday, 23 February 2012 - 2:04 pm

    Has anyone got a copy of NFC’s incorporation papers? Either they violated the company act of the above directors failed their fiduciary duties to the govt..

  5. #6 by SENGLANG on Thursday, 23 February 2012 - 2:48 pm

    NFC is just another scandal that shown BN refused to change. The hole was simply too deep to cover up. Who ever the PM is not capable of making changes. The dirty game will be going on until it is ousted in the coming GE or next immediate GE.

    Since PKFZ nothing much have change, as OTK say the PKFZ’s curtain has yet to raise. It be horror of the horror us the certain is really raise.

    The police is capable if they want to. Believe our police is of the world class but they have been used for all the wrong reasons. They are more capable than any of those in the advance country, the interrogation tactic is world class, if they want to solve NFC case it is a matter of days. But…. lack of East Wind

  6. #7 by SENGLANG on Thursday, 23 February 2012 - 2:49 pm

    What Nades say is true

  7. #8 by Jeffrey on Thursday, 23 February 2012 - 3:26 pm

    Is this damage control to now dissociate the govt from going ons at NF Corp’s board level in which govt representatives sat as directors? They said that at no time they were told of the purchase of the condominiums and other so-called investments and neither were they aware of it until the matter was reported in the media”. Nothing is impossible in life but is this likely? Even if it were intended to not let them know how could this happen when the third parties with whom NF Corp dealt business and from whom to buy, for examples the high end condominium” would have, in ordinary course of events, requested NF Corp’s board or circular resolutions to evince corporate authority having being given for ssanction of the transaction? How could there be no resolutions when 3rd parties would have required them? If the govt has a golden share what’s the joke of having govt’s represenatives sitting on NF Corp’s board who gaji buta & knew nothing of transactions? Didn’t they know of financial statements to be audited by NF Corp’s auditors and didn’t the financial statements reflect these transactions?

  8. #9 by Godfather on Thursday, 23 February 2012 - 3:39 pm

    This is a very convenient way of passing the buck i.e. “we did not know” or “we were not informed” or “we did not attend the emergency board meetings”. If they had more directors than you, then they can easily bypass you with circular resolutions. That’s not illegal. You are now part of the conspiracy.

  9. #10 by SENGLANG on Thursday, 23 February 2012 - 4:13 pm

    In response to Zaid Ibrahim to explain on MAS fiasco, TDM how can he explain (write a book) on MAS as he was not in charge, now anyone see the similarity on Shahrizat’s reply, why should her held responsible as she was in even a director/shareholder of NFC.

    What they say are true but any one believe that TDM has no nothing what happened in MAS? Something, any one believe the wife did not now what happened to NFC dealing?

    By merely say that while you are PM in the cabinet and say thing like that and ask people to believe it? Are Malaysian are such a fool?

    Now you see the arrogance of these BN ministers. all are trained and inherited that arrogance attitude. Do you believe it will change?

  10. #11 by waterfrontcoolie on Thursday, 23 February 2012 - 9:07 pm

    With the sandiwara staged for the PKFZ, the truth will never be known. When it was reported, the KSU then, I believe a Malay lady with a Phd openly declared that she spent 3 hours expaining the proposed funding to the CABINET. Then she went SILENCE. Why? And then what she had claimed totally disappeared from the radar! Even the audit did not go into the actual costs of the various inflated prices paid for the sub-components. Any structural engineer will confirm the 520 sem-warehouses were built way below specs. So much for the seemingly audit and what have you! Malaysians the choice is yours!

  11. #12 by bsyeo on Friday, 24 February 2012 - 9:41 pm

    Shouldn’t the NFC or the government make the loan agreement public in order to remove all doubts that the management has not acted appropriately.

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