Khairy Jamaluddin savaged PKR today for claiming corruption in the purchase of a RM10 million Bangsar condominium by a federally-funded cattle project owned by a minister’s family.
The Umno Youth chief claimed the condo was bought as an investment when the National Meat and Livestocks Corporation (NMLC), a company wholly-owned by Datuk Seri Shahrizat Jalil’s family, found itself with excess funds.
Khairy, who has appeared as Shahrizat’s staunch defender over the National Feedlot Centre controversy, said NMLC was left with surplus funds that when the government ran out of funds to develop satellite cattle farms.
It then decided on real estate investment as a means to put the excess liquidity to work.
He did not, however, say if the company was authorised to make the property investment.
“Should they have left the money in the current account, which does not have a high yield, while waiting for the satellite farms or should they have invested the money while waiting,” said Khairy.
“The management made a decision that the best return on investment would have been from real estate.”
Khairy added that the condo has since been rented out and also 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.
PKR secretary-general Saifuddin Nasution said yesterday 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.
Today, Khairy also slammed PKR strategic director Rafizi Rami and accused him of lying when the latter said beef from the feedlot project was sold only to elite restaurants.
According to the Rembau MP, beef from the project was also sold to Carrefour, Giant and wet markets.
“Most of the rest of the cow are sold in hypermarkets and wet markets and also enjoy this discount that Rafizi so desperately wants to link only to Meatworks,” said Khairy. “So this talk of ‘a subsidy for the elites who have expensive taste buds’ is absolute nonsense on multiple levels.”
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.
But Agriculture Minister Datuk Seri Noh Omar responded on October 31 that the project is a success and had met its targets.
Firstly, who appointed you to be spokesperson for NMLC? Did the management of NMCL appoint you? Why aren't the directors or Shahrizat answering the issues directly?
Secondly, you say, the condo was purchased to "reap some returns". Were this reasons minuted in the Board of Directors meeting? Could you please upload said minutes as evidence for taxpayers to appreciate?
And even if the Board did authorise it, could you give us the IRR (internal rate of return) of the condo purchase? What returns was NMLC looking for - capital gain or rental yield? Please give details if said rate of return has been achieved based on prevailing market conditions.
Thirdly, why wasn't the money returned to the government instead whilst waiting for production to take off? It seems to me that you deem buying a condo was the "best" option, but were other options explored?
If NMLC had returned said money to the government, maybe a few more students of ours would have obtained scholarships instead of hearing, "no allocation this year".
Fourthly, have you done project financing before? You are supposed to be from Oxford, and you even had a go at investment banking with ECM. Tell me, WHICH bank would lend to you a project facility, and later allow you to draw down and utilise or invest said funds for something that has got no connection whatsoever with that project (unless of course, NMLC meant to house them cows inside the condo?)
Do you know how that if the bank allows the borrower to do that, it would compromise on one of its core corporate governance criteria - if they were to close one eye and allow their borrower to use the credit facility for something other than its intended reason?
Tell me which bank does that in Malaysia?
Or is it only the Malaysian government that is so dumb to appreciate banking rules 101?
1) KJ you talked like a secondary school boy. If you have excess fund, why the company need to draw the RM89 million loan. Every cents of the loan is subject interest. Why can
t they take the excess fund to pay back the loan the company had taken. This will lowered the gearing.s why the auditor report said the company is in the mess.
2) This show why Malays ( not all the Malays ) are poor in running the business. The oppourtunity given to this company is a waste ..... that
3) I am wondering is any part of the loan were taken to buy super sport car....because there is an excess fund.
Malaysians are waiting to enjoy cheaper beef from Sharizat cow farm and that must be one of the project objectives. It is suppose to be a cow investment project but diversified to condo investment. Very fishy indeed. Where is MACC? Investigate this SHARK!
This project was awarded during when Pak Lah was the Premier, Mahyuddin was the Minister of Agriculture and the fourth floor 'monkeys' were in control. That explains why the head honcho of the fourth floor is fighting very hard defending.
Khairy, stop talking nonsense! Who appointed you to be a spokesman? The lady is not even saying a word, but you making so much noise.Was the condo necessary to house the COWS? Give us a break..... we were not born yesterday! So, who is pocketing the rental? Which bank allows such silly deals? An ordinary man on the street would be in prison right now for doing what you people have done!