Of Sharizat, NFC, Mercedes Benzs and those damm Condos!

My knee jerk reaction to this issue would be similar to everyone else. Another project, another business opportunity for those with the right connections to the corridors of power in Putrajaya. Nudge nudge, wink  wink say no more! I mean if the auditor general says the project is in a mess – then it is as if GOD himself have spoken! Not Pakatan Rakyat, not Jinjang Joe, not Mat Ludah but this Auditor General who is almost, but not quiet, GOD himself - in as far as government spending is concern! 

Audit Mandate

2.2.    The Audit of government revenues is provided for in Section 6(a) of the Audit Act which reads "The Auditor General shall in his audit make such examination as he may deem necessary to ascertain whether all reasonable precautions have been taken to safeguard the collection and custody of public moneys or other moneys subject to his audit". Section 5 of the Audit Act also allows the Auditor General "to examine, enquire into and audit the accounts of the Federation in such manner as he may deem fit."

2.3.    The various revenue laws also contain provisions allowing the Auditor General free and unimpeded access to all financial records. For example, Section 138 (4) of the Income Tax Act, 1967 provides that "Nothing in this section shall prevent the production or disclosure of classified materials to the Auditor General (or to public officers under his direction and control) or the use of classified material by the Auditor General, to such an extent as is necessary or expedient for the proper exercise of the function of his office".

Translation: Auditor General found NFC to be in a ‘mess’.

And since then all that has been revealed by a very very  mischievous PKR and other ‘avenging angels’ indicates that there is some explaining to be done by NFC. Explaining has been done by NFC, but here is the problem:

Oh what a tangled web we weave when first we set out to deceive.

Common sense tells us that when you are in the cattle business you have no business to be in real estate. Get real lah. Cattle…real estate…real estate…cattle…where got connection? We are not interested that you have got a yield of 22.6% as against 2.75 % for the money invested in the condo. You were given that RM$250 million loan for a specific purpose.

The National Feedlot Centre which is located on an earmarked 5,000 acres of land in Gemas, Negeri Sembilan is the envisioned centre of production for beef and beef products. As a High Impact Project under the Ninth Malaysia Plan, National Feedlot Centre project will be instrumental in attaining the 40% self-sufficiency for beef production by 2010, as targeted by the Ministry of Agriculture and Agro-based Industries.

National Feedlot Corporation Sdn Bhd (NFC) which been entrusted as the integrator of the project and will actively advance and promote the interests of the feedlot industry; develop environmental and animal welfare standards, quality assurance and training programs and working to keep feedlot operators abreast of emerging best management practices.

No mention of real estate, no mention of condos, no mention of Mercedes.So how?

The Rakyat are already upset that PDRM has gone into the ‘selesai’ business and Razak Baginda into the ‘Submarine’ business  - now you are going into the real estate business! If we continue to close one eye and shut the other then pretty soon UMNO might want to go into the ‘ada projek’ business – and where will it all end? Petronas going into the shipping business? Even Mahathir will not agree to that...or will he?   

The CEO said something about ‘social obligations’..careful there. Some smart aleck will ask you about that Mercedes purchase – hard to talk about social obligation when you buy a foreign car when you can buy Malaysian! So I suggest you keep away from those kind of claims.

Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem. A trade-off always exists between economic development, in the material sense, and the welfare of the society and environment. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment.[1] This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

While we are on social obligations I think that employing family does not constitute doing something that would benefit society at large….so do not talk too much about you being able to persuade your children to work for NFC – unless they volunteer to work gratis.

As for the family sacrificing all for the sake of our nation – let me suggest something. Show them how much each and every member of your family has earned, their perks and all associated expenses. I am sure you must pay them market rates. That will shut up all those people who ask you what your family have really sacrificed for the nation. 

Suggested guideline : If any of your family earns more then what the Market will pay for those similarly qualified then just skip this part! …get my drift?

Tell that wife of yours not to be spooked about what PKR is doing – they are just scoring political points. Tell her Deny! Deny! Deny!

Agree with you that the RM$250 million is a loan not a grant. Suggest you provide details of loan repayment and interest charge – that will shut up those PKR guys! But you did say that there were some concessions given – I hope those concession are not too ‘generous’ or it will bring up charges of cronyism – maklumlah that wife of yours is in the cabinet. Now days you cannot be too careful.

Travelling expense of RM827,000. I agree that it is just 0.3 per  cent of project value  - very small lah – but you know lah these rakyat only see the many, many,  many zeros after the numbers – so better if you give them the full list of who went where and why. 

P.S make sure that the details do not show your family traveling as a group  - nanti they start making claims that trips made were not work related and instead are  ‘family orientated’ business trip. 

Remember that Toyo guy making the 'work related' trips to Disney Land with his family? Messy business!

Remember that business of Lingam traveling overseas with that legal guy? Messy business again! I can just see Sharizat nodding in agreement and saying “Correct! Correct! Correct!

Last but not least, you mentioned project viability. From my past experience (when I was operating that Burger Stall in Padang Brown in Penang), the best way to handle this is to open your books to independent auditors and they will prove you right (ahem....hopefully!). 

You said that big projects require at least 3 years to start making money – so camna…how long has NFC been in operation…and is it making money yet? If not do what I advise before...diam diam aja!

Tell Sharizat that being a former resident of Bangsar I will always listen to what she has to say before I decide on issues relating to her – but this time around she has told us that she knows nothing about this NFC thing. I hope you have not been keeping all this happenings within NFC away from her! Despite now knowing what we know about NFC she is keeping an arms length distance from it all…I hope the same in not happening in bed! 

But I would be the first to agree that you should not get Sharizat involve in your business dealings because people will say that you used her position to  get that RM250 million loan from the Barisan Government. People are so unkind.  

  

PS

You have the right lawyer on your payroll – I am told that   Shafeeee guy has the right connections way to the top!

I know that it does not look too good right now for you and NFC...and of course the family....but as long as Sharizat is in the cabinet...still got hope lah! Last time I checked she is still in...I think!  All the best.