YOURSAY 'I think Khairy missed the point here. It is not just a matter of putting the idle funds into somewhere and try to generate some income.'

KJ: Condo purchase to offset cost of NFC delays

FairMind: The auditor-general said that the NFC (National Feedlot Corporation) is a mess but Umno Youth chief Khairy Jamaluddin (KJ) contradicts the AG by saying that it is a good strategic investment move. Now who is correct?

I have heard of excess funds put into the money market, fixed deposits or other cash or near cash assets. Who has ever heard of putting excess funds into long-term immovable property where it may take years to dispose - this is stupidest move I've ever heard.

Anonymous: Good try, KJ. Smart investment? The government has to borrow through bonds, treasury bills, EPF (Employees Providence Fund), etc, paying interest from rakyat's taxes so that NFC can invest in the property market?

Was this the intent for the grant and loan to NFC? Have you ever hear of ultra vires or breach of fiduciary duties?

Better to quickly look at the company's object clause and M&A (memorandum and articles), and if necessary, limit its scope. If not, pretty soon NFC may decide to be a ‘Ah Long' or invest in some Ponzi scheme.

Azizi Khan: KJ, you have said some dumb things in your spin, but this is the stupidest thing I have ever heard. Do you know the rate of return of those condos?

You are better off putting the money in a high-interest term deposit. How about the entire minister's family being involved in this feedlot business? How are you going to spin that? And what about the losses?

If you're going to spin, at least do a decent job at it. Not this half-baked attempt that insults our intelligence.

SKT: With such dumb ‘explanation', KJ is just digging a deeper grave for the BN.

This just leads everyone to question how the BN government could approve the release of the loan money (in such a big amount) to NLMC (National Meat and Livestocks Corporation) in the first place if they don't need the money?

Yum: Say I am a bank officer. And say, on the eve of a long weekend, I took some money from the till and invested it in the US markets.

Then, on Monday morning, before the bank opens, I report for duty and then replenish the cash into the drawer using my profits. Am I guilty of a crime? Would my employer take a kind view to this?

So using the loan to pay for a condominium is fine and dandy? Get it through your thick head - it's not about whether the original money is preserved or how much profit was made.

Josephine: How come KJ is giving statements on the NFC debacle? For an MP without portfolio, is he in a position to provide proper answers?

With his very passionate stance to defend the issues raised, it makes one wonder that maybe, just maybe, KJ has a stake in this condo-cow project. If not, why is he being such a busybody, and not let the minister or the management of the company respond?

Confused: Managing NFC is like managing a company. The directors of the company are accountable to the shareholders on how they use the funds of the company, including for investments.

For such huge investments, the directors are required to seek the approval of the shareholders.

Did  NFC seek the necessary approval before investing RM9.8 million in the property? What if the value of the property subsequently falls? Who shall then be responsible?

I think Khairy missed the point here. It is not just a matter of putting the idle funds into somewhere and try to generate some income. The point of the matter here is the processes and procedures in relation to the usage of funds, which are quite questionable.

Anonymous_rb345: KJ, please answer these questions:

1) Why should the government disburse more money than is required for the project that resulted in idle cash sitting in the bank account?

2) Why invest in a risky venture which is not easily realisable since they needed the excess cash to continue the project?

3) Why didn't they invest in government or corporate bonds which are safer, interest yielding and easily realisable?

Wira: KJ, I am very disappointed in you. In the first place, the money should not remain idle because NFC is lagging in its output.

If indeed the money is yet to be used, why did the government dispense it to this company? Shouldn't Putrajaya rightly request that the money be returned?

With such poor accountability by Putrajaya, no wonder the country is piling up so much debts.

Tkc: Khairy, if NMLC wants to park its surplus cash in properties - assuming that's in its charter, which is not - it is much better of buying 10 condos/houses at RM1 million each rather than one unit at RM10 million.

The reason is it is much easier to liquidate the smaller assets due to more potential buyers vis-à-vis high-end assets.

Changeagent: Based on Khairy's logic, Malaysia doesn't even need to hold anymore reserves of foreign exchange and gold. Better to use all the national reserves to purchase luxury condominiums in Bangsar instead since the capital growth and yield returns are so attractive.

Nik V: If any government loan is not used for the purpose intended, then in principle this is an example of misappropriation of funds in form and manner.

Take for example, if the government has a IT development fund and I successfully secure the loan but instead use it to buy a bungalow, a few luxury cars and organise lavish entertainment with the excuse that I need to make my business look successful, then I would have misappropriated the funds for my own personal gain.

Kingfisher: The misappropriation of NFC funds scandal is yet another appalling example of irresponsibility in the management of public funds. The values of trust, honesty, accountability and honour seems to be non-existent among those entrusted to do a solemn duty for the nation.

One gets the suspicion that those in political leadership feel that it is their special prerogative, notwithstanding established financial/fiscal policy rules, to use public funds as they deem fit.

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