KUALA LUMPUR (Nov 5): Prime Minister Datuk Seri Najib Tun Razak said the Finance Ministry would initiate legal action against National Feedlot Corp Sdn Bhd (NFCorp) for defaulting a RM250 million government loan.

Najib, who is also Finance Minister, said NFCorp, which runs the controversial National Feedlot Centre had to repay the loan between 2012 and 2028. NFC is owned and operated by Wanita Umno chief Datuk Seri Shahrizat Abdul Jalil’s family.

Najib said : "The loan amounting to RM250 million to NFC has to be repaid between 2012 and 2028.

"Until September 30, 2014, a sum of RM34.98 million (principal) has been recovered in 2012 and 2013, while the installment repayment for 2014 which had matured on January 9, 2014, has yet to be paid."

Najib said this in his written answer today to Shah Alam MP Khalid Abdul Samad and Pandan MP Rafizi Ramli queries on the matter.

Yesterday, Khalid had asked Najib in Parliament to state the status of the federal soft loan recovery process.

Today, Rafizi said at the Parliament lobby the government should not only recover the principal of the soft loan but also losses incurred on the 2.5% interest that was not collected from NFCorp

"I hope the government does not sweep this under the carpet because it is the people's money," Rafizi said.

He noted that the interest payment had amounted to between RM50 million and RM60 million since the loan was given out in 2006.