Ministry: Msian-Japanese company promises to settle NFC debt

A Malaysian-Japanese venture has given the commitment to settle all the remaining debts if it takes over the RM250 million National Feedlot Centre(NFC) cattle rearing project, the Finance Ministry told Dewan Rakyat today.

Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said that the company, Kirimitonas Agro Sdn Bhd, has sent in a letter seeking to sign a letter of intent and the Government is still evaluating the company.

“We are assuming that if the discussions go through they have made commitment to pay off all of the loans owed,” said Ahmad Husni, adding that several other parties have proposed to take-over the project but only Kirimitonas has written in officially.

He added, however, that the company’s commitment to take on the debts included a condition of a three year grace period.

“What is happening is that we are studying whether this company has the technical, financial capabilities,” he said during his winding-up speech debating the royal address.

Seeking an explanation, Khalid Samad (Pas-Shah Alam) asked why the company was willing to take up another party’s debts but it was not clear what it gained in return.

Ahmad Husni replied that the Government was not sure of the company’s intentions as negotiations have yet to reach a detailed stage.

On Tuesday, The Malaysian Insider reported that Kirimitonas Agro Sdn Bhd has received all approvals to run the cattle farm in Gemas, Negri Sembilan.

The report said that several banks are willing to fund the project that was first awarded to Wanita Umno chief Datuk Seri Shahrizat Jalil's family.