Sunday, March 11, 2012

NFCorp Related Company Distributed Shares to Directors

The directors of NFCorp have admitted that the money has indeed been transferred to companies which they own and are not related to NFCorp.  However, they argued that these “so-called ‘unrelated companies’ of NFCorp where the fund was channeled to, were always meant to be the subsidiaries of NFCorp.”

The Chairman of NFCorp Datuk Seri Mohamad Salleh had in earlier statements claimed that it was always their intention to “rationalise the structure of NFCorp to bring in all associated companies and assets within the hold of NFCorp”.

The key “unrelated companies” held by the directors operating in Malaysia are National Meat and Livestock Company Sdn Bhd (NMLC), Real Food Company Sdn Bhd (RFC) and Meatworks Corporation Sdn Bhd.

At the same time, many “unrelated companies” were also set up in Singapore.  For example, by April 2010, RFC has also invested at total of S$450,000 (RM1.08 million) for 450,000 shares in Meatworks (Singapore) Pte Ltd.

However, interestingly on 20 July 2010, shares owned by RFC in Meatworks (Singapore) were distributed to the individual directors of NFCorp.  RFC had transferred 90,000 shares to Mohamad Salleh and his three children, Wan Shahinur Izmir, Wan Shahinur Izran and Wan Izzana Fatimah Zabedah each, leaving RFC with only 90,000 shares.

The above transfer of shares to individual family members of Minister of Women and Family Affairs, Datuk Seri Shahrizat Jalil indicates very clearly that there was obviously no intent to “rationalize the structure of NFCorp” by making these “unrelated companies” subsidiaries of NFCorp.  Had that been the original intent, what is the purpose of transferring the shares of Meatworks (Singapore) which is invested presumably with money from the RM250 million government loan, to the respective individuals?

In fact, the act that RFC had invested S$450,000 in Meatworks (Singapore) and subsequently transferred S$360,000 (RM865,000) of these shares to the individual directors is another clear case of criminal breach of trust.

We call upon the NFCorp directors to explain the above suspicious transaction, failing which we call upon the police and Malaysian Anti-Corruption Commission (MACC) to expand its investigations to cover the actions of all the Singapore companies owned by the directors.
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