Bank-rejected firm got RM150 million from Putrajaya, not RM100 million, says PKR

PKR today revealed that NSE Resources Corporation (NSERC) Sdn Bhd received an additional grant of RM50 million from Putrajaya, besides an earlier cash injection of RM100 million.

Party strategy director Rafizi Ramli said the RM50 million grant was awarded to NSERC by the Ministry of Energy, Green Technology and Water.

"This shows that a private company like NSERC managed to obtain two separate grants from different ministries to carry out its commercial activities," he said today.

"In fact, the company in its application letter said that its costs were RM130 million, but the RM150 million surpasses that figure," Rafizi (pic) added.

Rafizi yesterday questioned how Putrajaya awarded a RM100 million research and development grant to the company, which banks had refused to finance.

"It is scandalous the way a commercial company like NSERC 'shops' around Putrajaya looking for grants," Rafizi said.

He said he was probing into the issue as there was more to the matter than meets the eye.

"Two large grants from two different ministries to a commercial company? There is definitely more beyond this," he said at a press conference at the PKR headquarters in Petaling Jaya.

"It is clear that somebody is going all out to help this company with the massive cash injections of RM150 million," Rafizi said.

"What is the relationship between this company and the powers-that-be in Putrajaya?" he asked, saying there was a possibility NSERC had received previous grants.

He said he was unsure whether the RM150 million had already been disbursed to NSERC, adding that if that were the case, it might be difficult to retrieve the funds.

"If the RM150 million has not been disbursed to NSERC, then Putrajaya must take action and block the funds from being transferred.”

Rafizi also released a letter written by NSERC to the Terengganu Economic Planning Unit, stating that it had received a RM50 million grant.

The RM50 million was awarded to NSERC by the Ministry of Energy, Green Technology and Water under its green technology grant scheme.

The RM100 million was awarded by the Science, Technology and Innovation Ministry (Mosti).

Rafizi said there had been no feedback from Prime Minister Datuk Seri Najib Razak or his office on the matter.

"I received a text message from someone claiming to be an officer attached to Najib.

"The officer wanted to meet up with me to clarify and discuss the information which I had exposed about NSERC."

Rafizi said the evidence which he had made public was clear enough and there was no need to sit down to discuss NSERC.

"I am still waiting for an official explanation from Putrajaya regarding this grant scandal and the awarding of public funds to a private firm for commercial activities.”

Rafizi suggested that a special panel be established by the Auditor-General's Department to probe into the RM150 million allocations.

"More importantly, Najib should disclose what is the relationship between him or his family members or Umno or Barisan Nasional and NSERC.

"Why has NSERC been given such special treatment that the company can receive RM150 million from two different ministries?"

Yesterday, Rafizi revealed that NSERC had been refused financial assistance from banks and financial institutions.

He said the failure of NSERC to get commercial funding for a gasified steam boiler plant in Kerteh, Terengganu, raised doubts about the viability of the project and Putrajaya's decision-making process.

“This is worse than a bailout because it's free money,” Rafizi said, questioning the use of Mosti's RM1.152 billion R&D fund.

Rafizi said if the project was commercially viable, any bank would have given its backing.

"The fact that the owner of this company clearly stated that his project did not get the support of financial institutions is already a red flag,” the Pandan MP said.

Rafizi alleged yesterday that Najib had lent his support to NSERC's application for a grant.

The company claimed that it had signed a memorandum of understanding with a South Korean conglomerate (CJ Cheiljedang Corporation) and a French public-listed company (Arkema S.A.) to jointly build the world's first bio-methionine plant in Malaysia worth RM2 billion.

However, due to difficulties in obtaining financial assistance from banks, NSERC applied for a grant from Mosti to ensure it had sufficient cash flow. – April 23, 2014.