MOF to seek full repayment of RM250 loan, including late interests from NFCorp

KUALA LUMPUR: The Ministry of Finance (MoF) is seeking full repayment of the RM250 million loan, including its interest and latest late interest charges, given by the federal government to National Feedlot Corporation Sdn Bhd (NFCorp) in 2008.

Its Minister Lim Guan Eng said court claims will be conducted by the Attorney-General’s Chambers (AGC) against the company which still owes RM253.6 million to the government.

He said a notice of declaration of event of default in accordance with Clause 14 of the loan agreement between the government and NFCorp was issued in September 2014 and the matter was referred to the AGC on Aug 29, 2018 for further action.

Lim Guan Eng

“The AGC is currently looking into the matter and will announce the latest development when available,” said Lim in a statement today.

The MoF highlighted that NFCorp received a loan facility of RM250 million from the federal government on Jan 9, 2008 at an interest rate of two per cent with a loan period of 20 years and grace period of three years.

The loan is secured by a debenture which was signed alongside the loan agreement on Dec 6, 2007.

“Based on the complete statement of federal government loans as of April 30, 2019 from the Accountant-General’s Department, the outstanding loan amount (owed) by NFCorp to the government is RM253.62 million, which includes interest and late interest charges as of April 30, 2019.

“From this sum, RM110.84 million is the amount due for repayment to the federal government as of April 30, 2019, consisting of loan principal arrears of RM81.99 million, loan interest of RM22.97 million and late interest charges of RM5.89 million,” Lim said. – Bernama