Monday 06 May 2024
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KUALA LUMPUR (March 15): The High Court here has set August 18 to deliver its decision in the ongoing RM250 million civil suit brought by the government against NFCorp, its chairman and nine others.

Ongoing since 2019, the suit finally came to a conclusion on Wednesday (March 15) after the defendants (NFCorp and others) wrapped up their case with their last three witnesses.

Presiding Judge Anand Ponnudurai set May 12 for parties’ oral submissions, and his decision to be delivered in August.

The case revolves around a RM250 million loan agreement signed on Dec 6, 2007 between the government and NFCorp for the financing of costs to establish and operate the NFC in Gemas, as part of government policy to develop and increase beef production for local consumption.

NFCorp's chairman, Datuk Mohd Salleh Ismail Salleh, is the husband of former Wanita Umno chief Tan Sri Shahrizat Abdul Jalil, who was also formerly the minister of women, family and community development.

Also named as defendants in the suit are the couple's three children and seven companies owned by the family, including NFCorp.

They are accused of misappropriating and wrongly using RM118 million out of the government's RM250 million loan.

The government is also seeking a declaration from the court to have Salleh's family personally liable for the debt repayment, the RM118 million allegedly misappropriated from the loan and secret profits arising from it, as well as Putrajaya's entitlement to claim equitable title to the properties bought by the defendants using the misappropriated sum.

The three children, Wan Shahinur Izran, Wan Shahinur Izmir and Wan Izzana Fatimah Zabeddah had taken the stand as the defendants' last witnesses in the suit.

Izran and Izmir were asked separately when they took the stand whether NFCorp had met production targets as per the agreement with the government. Both men said that the government had not held its end of the bargain in building an Export Quality Abattoir (EQA) which they contended would have allowed the targets to be met easily.

Senior federal counsel Nurhafizza Azizan, who is representing the government had asked both the same question.

Izran said: “Production figures could not be achieved because there was no abattoir, it is akin to having an airport without a landing strip.”

His brother Izmir, who took the stand after him, said that it was his role to manage the day to day operations in NFCorp’s land in Gemas, Negeri Sembilan.

He said that NFCorp intended to repay the government loan of RM250 million fully but they were not able to do so as they could not meet production targets because the EQA had not been built.

“It’s like having a car with no engine and tires,” he told the judge using a different analogy.

After Izmir, Izzana took the stand and was asked about certain company expenditures which included overseas trips to Dubai and New York to name a few.

She explained that as she was in charge of sales and marketing for NFCorp, these trips were to meet clients who were very interested in investing and helping NFCorp.

When counsel Nurhafizza asked the three siblings if they agreed that the government had suffered losses because of the project, the siblings disagreed.

Justice Ponnudorai then asked both parties if they are in agreement that the project had failed.

“Can we agree that this project took off and crashed and we can all agree it’s failed?” he asked.

Both the plaintiff and defendants agreed.

Salleh is represented by Datuk K Kirubakaran and Datuk Seri Rajan Navaratnam.

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