KUALA LUMPUR: The National Feedlot Corporation (NFC) intends to settle a lawsuit filed by the government against it to reclaim RM253.6mil in loan payments and interests.
The High Court here, however, has also proceeded to fix four days beginning May 17 to resume trial, if both parties fail to reach a settlement.
Judicial Commissioner Anand Ponnudurai set the dates before adjourning the proceedings for the day after the court was informed of the possibility of a settlement.
Senior Federal Counsel Nurhafizza Azizan, who appeared for the government, told reporters that the case was initially scheduled to resume hearing yesterday but proceedings were adjourned following NFC’s intention to settle.
“(NFC chairman) Datuk Dr Mohamad Salleh Ismail, who is the second defendant, will testify if the hearing resumes on May 17,” she said.
The government filed the suit in June 2019, to recoup RM253.6mil in loan payments and interests in connection with the National Feedlot Centre in Gemas, Negri Sembilan, from the company.
In its statement of claim, the government named NFC as the first defendant, while Mohamad Salleh, who is the husband of former Wanita Umno chief and minister Tan Sri Shahrizat Abdul Jalil, and their three children, Wan Shahinur Izran, Wan Shahinur Izmir and Wan Izzana Fatimah Zabedah, are the second to fifth defendant respectively.
Other defendants are six companies controlled by Mohamad Salleh’s family, comprising 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.
The government signed a loan agreement totalling RM250mil with NFC on Dec 6, 2007, to finance the costs of setting up and operating a National Feedlot Centre in Gemas as part of its policy to develop and increase beef production.
The loan was disbursed in three separate tranches and Mohamad Salleh’s family had allegedly made 10 withdrawals amounting to RM180.51mil from Jan 24, 2008 to Jan 3, 2011.
Of the RM180.51mil withdrawn, it claimed that only RM8.32mil was paid directly to third parties to conduct the National Feedlot Centre project.
The balance of the withdrawn funds was transferred to other NFCorp accounts, and a total of RM118.04mil from this balance was allegedly misused.
Included in the alleged misuse of funds is a total of RM9.76mil which was allegedly used to purchase one of two units at One Menerung Residence, allegedly done by the sixth defendant, the National Meat & Livestock Corp.
It was also claimed that a total of RM2.1mil was used to make payment to one Shamsubahrin Ismail for undisclosed purposes.
It was also claimed that Mohamad Salleh’s family had allegedly used the funds loaned by the government to settle monthly rental amounting to RM28,000 for an office lot at Solaris Mont Kiara.
Other alleged expenditures made with the borrowed fund included the purchase of two plots of land in Putrajaya, payment to two legal firms and the purchase of a four- storey shophouse at Solaris Mont Kiara.