KUALA LUMPUR: The Kuala Lumpur High Court has ruled that the government had failed to prove its case against the National Feedlot Corporation (NFCorp) and 10 other defendants.
Justice Anand Ponnudurai ruled there was no wrongful use of the RM250mil loan sum and no breach of fiduciary duties by the 11 defendants.
In its suit, the government named NFCorp as the first defendant, while NFCorp executive chairman Datuk Seri Dr Mohamad Salleh Ismail and his three children – Wan Shahinur Izran, Wan Shahinur Izmir and Wan Izzana Fatimah Zabedah – were named the second to fifth defendants, respectively.
The other defendants are six companies controlled by Mohamad Salleh’s family, namely, National Meat & Livestock Corporation Sdn Bhd, Real Food Corporation Sdn Bhd, Meatworks Corporation Sdn Bhd, Agroscience Industries Sdn Bhd, Asian Bioscience Corporation Sdn Bhd, and Technology Imageware (M) Sdn Bhd.
The court also found that the Federal Government had breached the Implementation Agreement (IA) when the plaintiff failed to construct the Export Quality Abattoir (EQA) and breached the Loan Facility Agreement (LFA) by unlawfully terminating it.
Justice Anand pointed out that it was not unlawful for NFCorp to utilise part of the loan sum to invest in properties in the name of the company and the company did not breach the loan agreement and IA.
The court ruled that the project’s targets were not met due to the government’s failure to build the EQA.
Justice Anand directed for the unused RM33mil loan sum to be returned by NFCorp to the government.
He also ordered for the investment properties be transferred to the government.
The court also allowed NFCorp’s counterclaim against the government for breach of agreement and allowed for nominal damages of RM10,000.
Senior federal counsel Nurhafizza Azizan and Ashraf Abdul Hamid appeared for the government.
NFCorp was represented by counsel Datuk K. Kirubakaran, Datuk Seri Rajan Navaratnam and Chong Kah Yee.
The government had filed the civil action against the defendants on May 31, 2019.
It alleged that it entered into an agreement with NFCorp on Dec 6, 2007 for a RM250mil loan to fund the National Feedlot Centre in Gemas, Negri Sembilan.
