National Feedlot Corp: Govt still chasing RM250m loan

KUALA LUMPUR: The government is still pursuing the recovery of funds from National Feedlot Corporation Sdn Bhd (NFC), with the timeline dependent on ongoing legal proceedings and negotiations.

Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said this in a written parliamentary reply, adding that the government continued to take measures to recover the outstanding loan.

NFC was granted a RM250 million federal loan in December 2007 to establish and operate a cattle feedlot centre in Gemas, Negri Sembilan.

"To recover the entire outstanding loan balance from NFC, the government has taken legal action by filing a civil suit against NFC on May 31, 2019, to claim the outstanding loan balance of RM253,618,455.03," he said.

On Oct 13, 2023, the High Court ordered NFC to pay the government RM33.74 million and ruled that the government was entitled to RM86.9 million seized from the defendants and held by the Accountant-General.

The court also ruled that the government was the beneficial owner of several properties, including land in Gemas and Putrajaya, as well as units at One Menerung Residences in Bangsar.

Anwar said the government had recovered the RM86.9 million and terminated the National Feedlot Project following the Kuala Lumpur High Court's decision on Oct 31, 2023.

The government had secured the forfeiture of most of the properties involved, while legal proceedings to forfeit the remaining properties were ongoing.

However, he said the timeline for recovering the outstanding funds remained uncertain as it depended on ongoing legal proceedings and negotiations with other parties.

"Nevertheless, the government continues to take proactive measures to ensure that public funds are recovered," he said.

Anwar was responding to Datuk Dr Suhaili Abdul Rahman (Independent - Labuan), who asked about follow-up action on the High Court's decision, efforts to recover the outstanding loan and the expected timeline and mechanisms for collection.

The court also allowed the defendants' counterclaim, awarding them nominal damages of RM10,000. The government was ordered to pay RM15,000 in costs and/or joint expenses previously incurred by the defendants.