NFCorp Replies : The Police Do Not Know The Law

news release

FOR IMMEDIATE PUBLICATION

SUNDAY 26 FEBRUARY 2012

NFCorp questions motive of director of commercial crimes

KUALA LUMPUR --- Following media reports that Federal Commercial Crimes Investigation Director Datuk Syed Ismail Syed Azizan had stated that police investigations into the RM250 million cattle venture issue had indicated that there were elements of criminal breach of trust (CBT) and cheating, NFCorp is concerned that the statement had been prematurely given.

According to news reports, the statement given suggested that money had been channeled from NFCorp to unrelated companies in which NFCorp held no shares; that certain NFCorp directors also sat on the boards of these unrelated companies; and that the police in view of the above, had recommended for the directors of NFCorp to be charged for CBT.

NFCorp, as advised by its lead counsel Datuk Seri Shafee Abdullah, wishes to address in reply to each of these statements.

Firstly, NFCorp is shocked and puzzled that the Director of Commercial Crimes had prematurely issued such a statement when he himself had admitted that the investigations are still ongoing and therefore still incomplete.

Further NFCorp questions the prudence and motive behind such a statement as it seems to be an attempt to unfairly pre empt the honourable Attorney General’s decision over the matter.

Is the Director of Commercial Crimes attempting to usurp the powers of the honourable Attorney General who in law is the sole authority under the constitution to decide if there is a crime or not for purposes of prosecution, asked NFCorp.

Secondly, the Director of Commercial Crimes seems to have forgotten that the so-called ‘unrelated companies’ of NFCorp where the fund was channeled to, were always meant to be the subsidiaries of NFCorp.

The Commercial Crime division, according to statements given by the directors to the authorities, is aware of the 2009 proposal by NFCorp to the government to novate the loan agreement so as to rationalise the structure of NFCorp to bring in all associated companies and assets within the hold of NFCorp so that the government loan be better secured.

Thirdly, the fact that the directors of NFCorp sat on the board of these associate companies prove exactly the point of the attempt to rationalise the above said structure.

Fourthly, the Commercial Crimes fails to understand the dynamics of the facts and the law in the NFCorp issue.

According to counsel, a loan document is never a document of the nature of a trust. If the loan is used for a different purpose (which is not the case here), it is therefore at worst, a breach of the loan agreement for which a civil remedy has been inbuilt in the loan agreement. It is not a criminal matter.

Counsel also added that the fact of NFCorp wanting to rationalise the various associated companies demolish any perceived dishonest intention on the part of NFCorp and/or their directors.

NFCorp therefore wishes to enquire the police if, in their investigations, they had paid enough consideration to the fact that there is total lacking of the elements of dishonesty in this case, which is a primary ingredient of CBT and cheating?

In the last three and half months, the directors, management and staff of NFCorp had extended its fullest cooperation to both the police and the MACC wherein especially the directors had been subjected to intensive interviews. NFCorp will continue to extend its cooperation to ensure that the truth prevails.

NEWS RELEASE prepared and issued on behalf of National Feedlot Corporation Sdn Bhd (NFCorp) by public relations consulting firms - GRA Communications Sdn Bhd and Prestige Communications Sdn Bhd.

FOR MORE INFORMATION, please contact GHAZALIE ABDULLAH at +6017 3361090 or ghazalie@gra-pr.com OR HAMIDAH KARIM at +6012 2672397 or hkarim@i-prestige.com.