NFC Lawsuit: Gov't to Recover RM120m

Today, The High Court allowed the Malaysian Government to demand payment of loans and interest amounting to RM120.64 million from National Feedlot Corporation Sdn. Bhd. (NFCorp) related to the National Feedlot Center project in Gemas, Negeri Sembilan. However, the government failed to get the full RM253.6 million loan and interest payment requested when the court only allowed part of the amount.

The judge also ordered three plots of land each in Gemas, Putrajaya and the One Menerung property in Bangsar, which were bought using the loan, to be returned to the government.

NFC Lawsuit

Judge Anand Ponnudurai ruled this after allowing the Malaysian Government’s suit against the company and 10 other defendants including its Executive Chairman, Datuk Seri Mohamad Salleh Ismail and his three children.

“The court is satisfied with the defendant that if the entire claim of RM253.6 million is allowed, the action will only cause the government to gain wealth unjustly,” he said.

When delivering his decision, the judge said, NFCorp as the first defendant was ordered to repay RM33.74 million, This is an amount that was not used in the loan.

The court was also satisfied that the Malaysian Government as the plaintiff deserves to recover the entire amount of RM86.9 million seized from the defendant which is now kept by the Accountant General.

The court allowed NFCorp’s counterclaim after being satisfied that the government violated the terms of the loan agreement and the implementation agreement signed by the two and ordered the government to pay RM10,000 to the company.