Controversial company National Feedlot Corporation today defended its purchase of two multimillion ringgit condominium units, saying that it was a smart investment move.
Speaking at a briefing with selected media in Gemas, Negri Sembilan, today, its chairperson Mohamad Salleh Ismail said the yield from the luxury property in upmarket Bangsar was much higher than if the funds were kept in the bank.
The Star Online reported that NFC had bought two condominiums in Bangsar, each costing RM6.9 million, and rented them out for RM70,000 a month.
This resulted in a yield of RM900,000 each, at 12.9 percent return on investment, which was far more lucrative than the 2.9 percent it would have gained if the funds were kept in the bank, Mohamad Salleh said.
Husband to Women, Family and Community Development Minister Shahrizat Abdul Jalil, Mohamad Salleh's explanation involving the spending of some of the RM181 million government loan to the NFC echoes Rembau MP Khairy Jamaluddin's fervent defence of the cattle project.
The report also said the company is mulling legal action against PKR strategy director Rafizi Ramli, who has been on the forefront of the party's expose on the issue.
NFC's lawyer Muhammad Shafee Abdullah, who was at the media briefing, had advised his client to take legal action against Rafizi.
However, PKR had said that the family of the minister purchased one luxury condominium unit in Bangsar and the price was tagged at RM9.8 million.
The Star Online also reported that NFC revealed police were investigating the company's finance manager and sales manager, who have resigned under "suspicious circumstances" several weeks ago.
Project 'not a mess'
According to the report, Mohamad Salleh denied claims that the project is "a mess", despite it being highlighted in the Auditor-General's Report 2010 as it was.
The company chairperson said the project was on track to meet its target of 60,000 head of cattle by 2015.
Referring to the Auditor-General's Rreport, he said that NFC had only met 41.1 percent of its 2010 target as it had to "ensure the market is there and...wait for halal certification".
He also justified NFC's Meatworks' restaurant in Mont Kiara as a way to showcase the meat, partly resulting in the company scoring some 150 clients, including supermarket chains Jusco and Cold Storage.
The online report also said that the bulk of its meat, which come from Australian cattle that are fattened up at the NFC facility in Gemas, go to wet markets and hypermarkets, with only 11 percent supplied to restaurants.
Pengerusi NFC pertahan beli kondo, dakwa nilainya RM6.9j
Pembelian kondo keputusan perniagaan bijak: Pengerusi NFC
tkc - Another chairman that cannot count. Total of two condos at RM6.9 million each is RM13.8 million. Rental at RM70,000 per month equals RM840,000 per year. Yield is therefore 6% (not 12.9%). Btw, if the NFC farm has not received halal certificate yet, why is Meatworks @ Solaris Mont Kiara advertised as “totally 100% halal joint”?
TehTarik - Highly suspicious rental claims . The rental for a 8352 sq . Ft penthouse at one menerung is only 22,000 ringgit per month . The sale price for such a condo might be around 10 million ringgit. Hence the rental yield is around 2.2 per cent. Maybe NFC should provide details of the claims of a 70,000 rent for a 6.9 million condo. I have not heard of a 12 % rental yield for an apartment in Bangsar. Please don't take Malaysians to be imbecile fools.
Good men - And I thought the purpose was to produce beef (silly me), using (in their own words) a "a high impact project". Its been high impact all right - on the rakyat's pockets. Meanwhile you guys are having RM800,000 overseas trips.