NFC defends purchase of Luxury Condo Units

November 18, 2011

NFC defends purchase of Luxury Condo Units in Up-Market Bangsar

by Clara Chooi (11-17-2011)

Dogged by claims of irregularity, the National Feedlot Corporation (NFC) finally broke its silence today to defend its purchase of  multi-million luxury condominum units in Bangsar as a “good business decision”.

In a press briefing opened to selected mainstream media organisations, its chairman Datuk Seri Dr Mohamad Salleh reasoned that the investment had helped yield better returns for the NFC project compared to keeping the money in a bank.

It was also revealed then that the NFC owns two units at the upmarket condominium, as opposed to one as previously reported.

According to Berita Harian Online, however, Mohamad said the condominium units had cost over RM6 million each, instead of the RM9.8 million originally alleged by PKR.

Mohamad reportedly claimed that the money, if held in a bank, would have only yielded 2.6 per cent in annual returns.“[Real estate investment] can generate annual profits of up to 12.9 per cent as well as cash rebates and rental yield of RM900,000 for the first year, which is channelled to the company and not to any individual,” the Malay daily quoted Mohamad as saying during the briefing.

The Berita Harian report, however, did not state if Mohamad, the husband of Cabinet Minister Datuk Seri Shahrizat Abdul Jalil, had explained whether the federally-funded National Feedlot Centre had been allowed to make such alternative investments.

“There are still many projects under the NFC that are yet to be carried out.As such, while waiting for their implementation, I figured the grant money that was yet to be used should be invested so we can generate profits,” he said.

Despite disputing PKR’s allegations of corruption against his company, Mohamad said he was yet to decide if he should take legal action against his accusers, particularly PKR strategy director Rafizi Ramli.

“The whole family must sit together and discuss this before deciding further what action we should take,” the daily quoted him as saying.

PKR was first to expose details of the now-scandalised NFC project and recently revealed that Mohamad’s company had spent a whopping RM9.8 million to purchase the condominium unit.

Its secretary-general, Saifuddin Nasution, said the luxury apartment at One Menerung, Bangsar, was recorded by NFC, a cattle farming project managed by the minister’s family, as part of a RM83 million “loan” to NMLC.

But UMNO Youth chief Khairy Jamaluddin savaged the party for the allegations, claiming the condo was bought as an investment when the NMLC found itself with excess funds when the government ran out of funds to develop satellite cattle farms.

Khairy has also claimed the condo had appreciated in value since it was purchased. He did not, however, specify the rental yield.Many real estate experts have concluded that Kuala Lumpur is facing a glut of luxury properties, with rental yields falling as much as 50 per cent in some cases.

The Auditor-General’s Report released last month had criticised the NFC, pointing out that it was now “in a mess”. The report said production in 2010 was only 3,289 head of cattle or 41.1 per cent of the target set.

Agriculture Minister Datuk Seri Noh Omar, however, responded on October 31 that the project is a success and had met its targets.

27 thoughts on “NFC defends purchase of Luxury Condo Units

  1. For personal use or for rental? If for rental, who is the lessee? Minister-Senator Shahrizat and family? If yes, what is the rent? Is the Minister paying rent to NFC on arms length basis?. Lots of questions can be raised. –Din Merican

  2. Dear Allah,I know that I am not so smart but this hamba of yours thinks that I am as dumb as he is, n with a Doctorate to his name,what else can I say except perhaps you remind him that you are Maha Bijak Lagi Maha Merancang,I know you will want me to forgive him,that I will,but please tell him,please don’t insult my intelligence,thanks n Syukur to You,Ya Allah

  3. Why are we talking about how to stuff cows into a Minister’s condominium when Obama is sending U.S. troops to Australia to ‘help train Aussie troops’ in an unprecedented move to counter China’s belligerence in the Pacific??

  4. NFC has to decide if it is in the business to breed cows or ‘ayam’ (not the feathered kind). If in case of the latter then the return to investment makes commerical sense.

  5. When that pea-brained “I am Malay first and Malaysian seconc” Muhyiddin Yasin was the Minister of Agric, he revised the agreement between Ministry of Agric and NFC by addin the word CONDOS NEXT to CONDOS.

    NFC Agreement now reads, “….. The RM 250 million shall be used to develop COWS/CONDOS. NFC shall agree to use a part of the finances to invest in the procurement of COW SHEDS/CONDOS…..”

    That is the reason why NFC is allowed to buy 2 units of CONDOS in BUNGSAR. Cow sheds in Gemas and Condos in Bungsar.

  6. Addendum to Minutes of NFC Board Meeting

    Chairman said for 1Malaysia to succeed, CONDOS should not be purchased in Gemas, because NFC is a NATIONAL project. The project must be seen as a NATIONAL initiative.

    Chairman suggested the project needs HIGH VISIBILITY and be seen as an UP-MARKET effort of the Government/Ministry of Agric. The project should have presence in the Klang Valley and

    Chairmanntherefore proposed that only COW SHEDS be built in GEMAS (local visibility)while CONDOS be procured in Bungsar for HIGH VISIBILITY and UP-MARKET presence.

    Meeting agreed this proposal meets the 1Malaysia criteria.

    Proposal by chairman seconded and approved unanimously.

  7. “The whole family must sit together and discuss this before deciding further what action we should take,” the daily quoted him as saying.

    So Sharizat does know. Unless of course, they keep her out of the loop as suggested by Pak Lah and Muhyiddin.

  8. Well, questions Dato. In principle the investment is already wrong. It was supposed to be for cows not condos. Why not develop condos, it make more sense in returns.
    Now, the condos are made to “sound” investment then the following question will be (1) does the board agrees to the investment, any resolution made by the Directors (2) Who does the condos belong to? NFC or the minister’s family? (3) and statement to show the collection of rentals, since it is for investment. No returns mean not investment. Lastly, I wonder who is residing in the condos now?

  9. in a way the Chairman of NFC is trying to say … we bought TWO CONDOS…. SO WHAT??? dah lah pakai duit rakyat… sombong pulak tu… pernah dengar ini …”alang alang menyeluk pekasam biar sampai ke pangkal lengan”…. any way thanks to the Auditor General.. that could be one of many reasons why the report was tabled after the budget speech…

  10. Bertaubatlah dan sedar diri wahai penyamun penyamun UMNO. Buat harta berbillion billion nak bawa kemana? People say Money is the root of all evil. Kalau tak percaya cuba lihat. Ada sedikit wang dah mula sombong dan mula boros. Dapat lebeh lagi wang, mula tukar cara hidup, tak puas dengan apa yang ada, nak beli yang lebeh mahal, yang lebeh besar dan yang lebeh cantik. Isteri pun gandakan. Yang terlebeh wang mula membazir, beli yang tak tentu arah, buat maksiat dan mula pandai minum arak dan simpan perempuan sundal.

  11. Government loans for cow breeding used for purchase of luxury condoms….oops condos…solar powered TALKING BIBLES used to turn good believing MUSLIMS into apostates….only in Malaysia !!!!

  12. 1) “In a press briefing opened to selected mainstream media organisations, its chairman Datuk Seri Dr Mohamad Salleh reasoned that the investment had helped yield better returns for the NFC project compared to keeping the money in a bank”.

    Comment: Thank you so much for your initiative on behalf of Malaysian taxpayers. We trust that all the profits from your investment in condominiums (instead of cows) will go back to govt coffers?

    2) “Agriculture Minister Datuk Seri Noh Omar, however, responded on October 31 that the project is a success and had met its targets”.

    Comment: When all else fails, lower your standards and redefine “success”

  13. I may not be a property speculator, nor know anything about it’s development, but i sure as hell know what condo rentals are about and costing per sq. ft.. This guy besides his puerile “depends” (good choice of word, Dato) on rental income is really tokkin’ kok n bull . Here’s an update:

    There is definitely no justification whatsoever, whether in terms of investment or capital appreciation for such ‘Entitlements’. Misuse of public funds and disregard of fiduciary responsibility is manifestly Corruption!
    The moral deficit within UMNO is well advertised here; and as i said will do them in – even if the blinkered cow headed ‘expert’ political pundits don’t seem to think so.

  14. NFC : COCK & BULL

    The above always go together.The Cow Breeding is all Bull and the buying of up-market Condos is all Cock…rumoured it is being leased by well bred Cocks who are doing a crowing GAY business and the best customer is one newly rich millionaire (Sayful)!!

    The best sweet deal clause ever in a loan is that quoted by Mohamed Salleh that no need to start paying back the Loan(RM250 million) if it is not completely Drawn Down…wow…if say Rm1 million not ever drawn then no need to start paying back the Loan for infinity…what the fcuk is this!

    Anything but ABU.
    Hidup Malaysia!

  15. To make matters worst for NFC they bought the luxury condo under their children’s names.That being the case their children can also sell the condos in 5 years from now and pocket the money.

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