NFC’s RM250 million debt takeover deal is off, says Najib

The RM250-million debt takeover plan for the controversial National Feedlot Corporation (NFC) by a Japanese conglomerate is off, said Prime Minister Datuk Seri Najib Razak.

Najib, who is also the Finance Minister, said in a written reply to Petaling Jaya Utara MP Tony Pua that the deal had been scrapped because the government and Kirimitonas Agro Sdn Bhd could not reach an agreement on the matter.

“Kirimitonas Agro Sdn Bhd had offered to take over all of NFC's assets and liabilities,” Najib said in his reply in Parliament today.

"The deal was to ensure that the project will carry on to meet its objectives of ensuring sufficient supply of beef.

“However, both parties could not reach an agreement (and) negotiations have ended."

Najib said the company was picked as it had agreed to inject RM20 million in capital in a deal seen as an effort to revive the cattle farming project.

Pua told a press conference later that Najib’s reply made it clear that no company was willing to take over the huge debt as it would be a liability.

"We are not surprised with the reply... who will even want to blindly warrant such a huge debt?

"The question comes back to where it all started. Who will pay off the debt now and how will this be done?" he asked.

He said the Public Accounts Committee will also table a report on the RM250 million fund misappropriation after the committee agrees on the matter.

The report, he said, was compiled during the last session of the Parliament. - October 23, 2013.