Agriculture Ministry’s failure led to NFC scandal, says report

The RM250 million National Feedlot Corporation scandal was a result of the Agriculture Ministry’s failure to carry out due diligence before awarding the contract, the Malaysian Anti-Corruption Commission (MACC) said today.

In its 2012 annual report, the MACC reported a slew of weaknesses in the civil service system which left a lot of loopholes which were opened to abuse, such as the NFC scandal. Chief commissioner Tan Sri Abu Kassim Mohamed said the Agriculture Ministry had failed to choose a competent company to execute the project.

“The selection of the company was categorised as service acquisition and the format used was limited tender. Moreover, the company which was given the opportunity to present a working paper did not have sound technical competence or a strong financial background,” Abu Kassim said in the report.

“This also shows that the due diligence process on the selected company was not executed prior to the awarding of the contract. The government’s representatives on the NFC’s board of directors also failed to play their roles properly,” he revealed.

The agencies which were involved in the NFCorp were the Agriculture Ministry, the Finance Ministry and Menteri Besar Negri Sembilan Inc. Putrajaya held one “golden share” in NFC which is utilised when it involves decisions which can affect the public or national interests.

“There were also no requirements in the code of ethics for civil servants to make declarations if any of their immediate family members receive financial loans from the government. The project was not brought to the attention of the Cabinet or the Finance Ministry,” he said.

Although the RM250 million project involved several government agencies including the Finance Ministry, Agriculture Ministry and the Economic Planning Unit, the agency primarily responsible was not mentioned specifically.

Agriculture Ministry’s failure led to National Feedlot scandal, says report
November 06, 2013 – TMI


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