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PETALING JAYA: The National Feedlot Corporation (NFC) already has a buyer willing to fully pay the outstanding amount the company owes to the federal government, said its chairman, Datuk Seri, Mohamad Salleh Ismail.
The buyer has agreed to completely settle what is owed by the NFC in the three months following an agreement with the federal government to restructure the NFC, said Mohamad Salleh.
"The NFC is currently waiting for government approval.
"The new buyer of NFC has already agreed to fully assume the debt of its loan and fully repay the loan contracted from the federal government.
"Prime Minister Dr Mahathir Mohamad was informed in a letter dated 21 November 2018.
"The buyer has also informed the government of its willingness and confidence in the restoration and restructuring of NFC, including by making full payment of the loan contracted to the government," said Mohamad Salleh in a statement Monday ( May 20).
He was responding to a statement from the Ministry of Finance, Lim Guan Eng, on Monday, May 20, that the government was seeking to repay fully RMB 253.6 million in loans, interest and late payments from the NFC. .
Mohamad Salleh said he believed that Lim's statement followed a letter dated May 17 sent to the Ministry of Finance by NFC's new buyer requesting full repayment of the loan.
On January 9, 2008, the NFC received from the federal government a loan facility of RM250,000,000 at a rate of 2% per annum, with a 20-year loan period and a three-year grace period, for a project to expand the local beef industry.
The loan was secured by a debenture that had been signed on December 6, 2007 along with the loan agreement.
However, the project was controversial for being mismanaged, as indicated in the 2011 Auditor General's Report.
Mohamad Salleh said the new buyer and the Ministry of Agriculture and Agri-Food had already had discussions and formulated plans to revive the NFC project.
"I am confident that under Dr. Mahathir's leadership this issue will be settled in the best possible way. NFC will repay the outstanding amount to the government and this project, full of potential, will be revived by the government and the new NFC buyer, "he said.
In April, the Minister of Agriculture and Agri-Food, Datuk Salahuddin Ayub, had revealed that a company had expressed interest in the resumption of NFC.
Related story:
Guan Eng: The NFC still owes the government more than 250 million RM
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