Halal Industry 

We found buyer willing to repay outstanding loan to govt says Malaysia’s NFCorp

| 20 May, 2019
 Adib Povera

MAY 20, 2019 | 9:38PM MYT | KUALA LUMPUR

The National Feedlot Corporation (NFCorp) has found a buyer who is prepared to repay the company's outstanding loan amount to the Federal government.

Its chairman Datuk Seri Mohamad Salleh Ismail said since Oct 25 last year, the buyer has agreed to the settle the amount within the period of three months pending the approval from the Federal government on NFCorp's restructuring exercise.

“NFCorp is still waiting for the approval from the government.

“The new buyer has agreed to take full responsibility of NFCorp’s liability and prepared to make full redemption of the outstanding amount of loan owed to the government.

“The buyer’s intention has already been conveyed to Prime Minister Tun Dr Mahathir Mohamad through a letter dated Nov 21, 2018,” Salled said in a statement today.

The buyer, said Salleh, has also informed the government on its willingness and confidence towards the restructuring exercise to restore the corporation, which included full settlement of the outstanding loan.

“The buyer has also engaged in a series of discussions with the government, especially the Agriculture and Agro-based Industry Ministry, on the formulation of the restructure plan to restore projects in order to achieve the goals of the National Food Security with priority given to food production that is halal certified,” he said.

Salleh also said he believed that the statement by Finance Minister Lim Guan Eng, earlier today, in which, the latter has decided to seek full repayment from NFCorp for RM253.6 million in government loan, was issued following a letter sent by the buyer to the ministry.

He said in the letter dated May 17, 2019, the buyer had informed the ministry on the full redemption of the loan.

“I am confident that the issue will be resolved amicably under the leadership of the prime minister and that NFCorp will settle all outstanding loan the corporation owes to the government.

“This would be achieved through the implementation of projects, which would be redeveloped between the government and the new buyer of NFCorp,” he said.

Guan Eng, in a statement, said that based on the Complete Statement of Federal Government Loans as of April 30 from the Accountant General’s Department, the outstanding loan amount owed by NFCorp was RM253,618,455.03.

The amount, he said, included interests and late interest charges.

“From this sum, RM110,840,854.28 is the amount due for repayment to the government as of April 30, consisting of loan principal arrears of RM81,987,629.65, loan interest of RM22,967,131.55 and late interest charges of RM5,886,093.08,” he said.

Copyright New Straits Times