KUALA LUMPUR: The government is in the midst of taking legal action against the National Feedlot Corporation (NFC), which still owes it RM248 million in soft loans.
In a written parliamentary reply, the finance ministry said legal action was postponed in 2015 and again the following year after instructions from the second finance minister at the time.
“In 2012, the police were instructed to seal the assets and cash held by NFC,” it said.
Akmal Nasrullah Mohd Nasir (PH-Johor Bahru) had asked the ministry to state the efforts taken to retrieve the money involved in the NFC scandal and whether any legal action had been taken.
“They have paid RM35.5 million so far. As of June 30, the NFC still owes RM248.9 million,” the ministry said.
The NFC was set up to develop a commercial cattle feedlot farm and establish a beef production system through contract farming.
It was headed by executive chairman Mohamad Salleh Ismail, the husband of then Wanita Umno chief Shahrizat Abdul Jalil.
Salleh was charged with criminal breach of trust amounting to RM49.7 million. He was acquitted by the courts in November 2015.
The company had received a RM250 million soft loan from the government. It was supposed to enhance the country’s food security and reduce the need for beef imports.