The facts of NFC debacle

The National Feedlot Centre (NFC) and the National Feedlot Corporation (NFCorp) have been confusing the public a lot. In many cases, it has been used interchangeably but they are actually two separate entities. In actual fact, based on the AG Report 2010, the two have no legal agreement with each other at all. This is a highly engineered piece of work by those involved. Here is the attempt to clear some of the fog covering the so-called debacle and is based on the AG Report 2010 (full report here).

  1. The NFC being the project itself where the Government had approved RM73.64m under the 9MP (12.1.3)
  2. Originally covering 5,000 acres but finally 2,000 acres after the Menteri Besar Negeri Sembilan Inc (MBNS Inc) took back 3,000 acres (12.1.3)
  3. In October 2006, the MOA appointed Agroscience Industries Sdn Bhd as the lead company for 1,500 acres who in turn incorporated a subsidiary called National Feedlot Corporation Sdn Bhd (NFCorp) of which the name has confused everybody (12.1.4)
  4. NFCorp is to act as the integrator and a subcontractor to Agroscience to supply feeds and feeder (calves) (12.1.4)
  5. MOA also appointed Lamberts Agricultural Trade (M) Sdn Bhd as a lead company for 500 acres but eventually pulled out. This has been laid waste until now. (12.1.4 and 12.5.4)
  6. A grant was approved by MOF under this project and awarded to NFCorp worth RM13m on 3 October 2007 for the purpose of preparing the infrastructure. Only RM6.52m was disbursed and the balance on hold pending the decision of a feasibility study already conducted. The decision is currently pending with the MOF ( b, c, d)
  7. A soft loan amounting to RM250m was approved by the MOF to NFCorp at a rate of 2% per annum signed on 6 December 2007. A total of RM134.72m has been disbursed and the balance is pending the MOF decision on the feasibility study ( b, c, d)

It is true that the AG never said explicitly that the NFC project was in a “mess“. The audit was done on the NFC project (PFN – Pusat Fidlot Nasional). The AG had never confused his good office with the two entities and no audit can be done by the AG on the NFCorp.

The entire AG report with regards to NFC declared in sugar coated terms that it “did not fully meet the objectives set out by the Entrepreneur Development Programme (EDP) to raise up 130 satellite farmers…” and there were “weaknesses” in the management of the project. If you read the AG report, there was attention place in 11 pages of explanation how far off the mark the entire NFC was and showed the incompetency of Agroscience and in turn NFCorp in managing their 1,500 acres of the project. Obviously, there were the obvious oversight of the MOA with regards to the Lamberts portion of the project and also the eventual taking back by the MBNS of 3,000 acres of the project.

Having supported the NFCorp with RM250m of which close to RM135m has been disbursed to them according to unknown criteria, the seriousness of the incompetency cannot be fathomed given the extent of the waste on the location and the sheer display of not knowing how to operate this project at all.

This is not a case of a minor misdemeanor or oversight of a small scope of the project. The report tells us how disastrous the current state of affairs of the NFC is and points to the total incompetency of Agroscience and NFCorp.

Even if the Government audits NFCorp, it will surface nothing of interest because for all intents and purposes, there will be no fault identified, technically speaking. All the books will be in order, all the accounting entries posted correctly, the board had approved all transactions and hence, no breach of trust. Except that the officers in the company are also the board of directors. They do not need to entertain any accusations by PKR whatsoever. All is in order.

Anyway, it is also questionable if the Government can even launch an audit on NFCorp given that the MOF only have a soft loan agreement with them. It’s just the case like the bank trying to audit you but there is only a personal loan agreement between the parties. This suggestion to launch an audit on a private company is laughable at best.

What is not in order is the NFC and the ones to answer for will be the MOA and the MOF who both have approved and signed agreements with Agroscience and NFCorp respectively but not having to manage the agreements to the accomplishments of their various objectives.

The PKR taking aim at Shahrizat is really an attempt to flush out all the rest of the culprits involved in the Government and shake the tree to see which coconuts will fall off. It was the PKR who alleged the inappropriate purchases of the Mercedes Benz SL350, the two high-end condos in Bangsar as well as the exorbitant credit card claims, not forgetting the various trips and treats. The AG would not have seen this as the audit was done on the NFC and to see if the objectives were met. However, given that the soft loan came from public money, a higher accountability is thus expected. Although the NFCorp will beg to differ for obvious reasons.

The debacle has not reached its pinnacle yet. The worst is yet to come. And the dirty tricks of dragging the AG out is really abhorrent.

Watch for the poop to hit the fan soon!

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