NFCorp Buys "Apartment" in Kazakhstan

It was exposed by The Malaysian Insider (TMI) that the police are investigating the fact that the directors of National Feedlot Corporation (NFCorp) has used part of the RM250 million government soft loan to purchase an “apartment” in Kazakhstan.  The apartment is said to be worth RM1.7 million.

What justification can there be now from NFCorp for such a purchase, which is understood to be an “all-cash” transaction?  Does the company even have any clue about the cattle industry in Kazakhstan, which is blessed with large tracts of the Central Asian Steppes or grasslands?  Are we planning to export beef to Kazakhstan or are we planning to buy meat from them?

If the TMI report is indeed accurate, then there was “a memorandum of understanding (MoU) was inked in June 2011 between NFCorp and the Jambyl district of Kazakhstan to raise cattle for export to Malaysia and neighbouring countries.”

While there is nothing intrinsically wrong with cattle imports as a business in Malaysia, the purpose of the RM250 million government loan is clearly not intended for such purposes.  The purpose as specifically defined in the loan agreement is to establish and operate “a National Feedlot Centre to be consistent with the Government of Malaysia’s policy of developing, promoting and nurturing the production of beef and beef products…”

Based on the loan agreement, NFCorp is certainly not meant to be acquiring meat from Kazakhstan, much less buying an “apartment” there.

We call on NFCorp to come clean on the Kazakhstan property purchase and confirm if the report by TMI is true.  In public interest, the following questions must be answered:

1. Did NFCorp acquire an “apartment” in Kazakhstan?
2. What was the full purchase price of the “apartment”?
3. Is the property registered to NFCorp or to individual directors of NFCorp?
4. What is the status and use of the “apartment” as of today?
5. Did the acquisition of the property in Kazakhstan receive the endorsement of the Ministry of Finance?

If NFCorp refuses to answer the above questions, then surely Datuk Seri Najib Razak, as the Minister of Finance and the governing authority over the RM250 million soft loan must surely respond over the preposterous scandal.  Datuk Seri Najib Razak must confirm if any approval has been given to NFCorp to acquire an “apartment” in Kazakhstan, whether the Ministry of Finance endorses such an acquisition and what actions will be taken by the Ministry to protect the interest of Malaysian tax-payers, if indeed such an acquisition is deemed highly improper.

The Prime Minister has no right to talk about “transformation”, “fighting corruption”  and ending “political patronage” if he does not even have the steel and ability to act tough on those who abuse power.  Malaysians are thoroughly disappointed that the NFCorp scandals have only grown in size and incredulity over the past 6 months and yet do not see an end in sight with the Government taking any decisive action.