13.03.2012
The husband of embattled Umno minister Shahrizat Abdul Jalil was charged yesterday with the misuse of millions of ringgit in public funds, one day after she announced she was stepping down from her Cabinet post.
Four charges, two of them for criminal breach of trust, were brought against Mohamad Salleh Ismail, 64, executive chairman of National Feedlot Corporation (NFC).
The developments came after months of investigations into the controversy-plagued NFC that have embarrassed the ruling Umno party and dented its credibility.
Mohamad Salleh is accused of transferring RM 40 million ($13 million) in public funds meant for the NFC to the National Meat and Livestock Corporation (NMLC), a company owned by his family.
He is also accused of using RM10 million in NFC funds to buy two luxury condominium units in the upmarket Bangsar district for the NMLC.
He faces another two counts of breaching the Companies Act by using the funds without getting approval at the NFC’s annual general meeting.
Mohamad Salleh could be jailed for between two and 20 years, caned and fined, if convicted of criminal breach of trust. He could also be jailed for five years and fined up to RM 30,000 for each charge under the Companies Act.
He pleaded not guilty to the charges yesterday and was released on RM 500,000 bail. The case is set for mention next month.
The public-funded NFC was set up in 2008 to spearhead a national cattle-rearing project to boost Malaysia’s beef production and reduce its reliance on imports. It received a RM250 million soft loan from the government.
However, the Auditor-General’s report last October found the NFC had fallen far short of its targeted production.
The revelation was followed by a string of exposes by the opposition, accusing the NFC of improprieties that included the crimes that Mohamad Salleh was charged with as well as using the government loan to buy a Mercedes-Benz car and upscale properties in Singapore.
With the help of a whistle-blower, the opposition presented, as evidence to support its claims, accounting and bank documents, the authenticity of which the NFC has never refuted.
The scandal sparked public outrage and prompted calls for Datuk Seri Shahrizat, 58, the Minister for Women, Community and Family Development, to resign.
Public anger also mounted at the seeming inaction of the authorities in the face of allegations by the opposition.
Mohamad Salleh, who was the head of food science at Malaysia’s Agriculture University, appeared calm as the charges were read out to him at the Kuala Lumpur Sessions Court.
He was accompanied by Shahrizat and one of their three children. They declined to speak to reporters.
The couple’s children, aged between 25 and 31, are all NFC directors. It is still unclear whether they will face criminal charges.
The NFC scandal has been widely seen as one of the biggest obstacles that the Umno-led Barisan Nasional (BN) coalition has to tackle before it can call the next general election.
With Shahrizat announcing her resignation on Sunday and her husband brought to court yesterday, speculation is rife that elections are near.
A number of Umno politicians were reported to have praised Shahrizat for announcing her intention to step down next month, saying it was done “in the interests of the party and the government.”
The opposition lauded the government for acting against Mohamad Salleh, but also urged it to recover the RM 250 million loan from the NFC.
Four charges, two of them for criminal breach of trust, were brought against Mohamad Salleh Ismail, 64, executive chairman of National Feedlot Corporation (NFC).
The developments came after months of investigations into the controversy-plagued NFC that have embarrassed the ruling Umno party and dented its credibility.
Mohamad Salleh is accused of transferring RM 40 million ($13 million) in public funds meant for the NFC to the National Meat and Livestock Corporation (NMLC), a company owned by his family.
He is also accused of using RM10 million in NFC funds to buy two luxury condominium units in the upmarket Bangsar district for the NMLC.
He faces another two counts of breaching the Companies Act by using the funds without getting approval at the NFC’s annual general meeting.
Mohamad Salleh could be jailed for between two and 20 years, caned and fined, if convicted of criminal breach of trust. He could also be jailed for five years and fined up to RM 30,000 for each charge under the Companies Act.
He pleaded not guilty to the charges yesterday and was released on RM 500,000 bail. The case is set for mention next month.
The public-funded NFC was set up in 2008 to spearhead a national cattle-rearing project to boost Malaysia’s beef production and reduce its reliance on imports. It received a RM250 million soft loan from the government.
However, the Auditor-General’s report last October found the NFC had fallen far short of its targeted production.
The revelation was followed by a string of exposes by the opposition, accusing the NFC of improprieties that included the crimes that Mohamad Salleh was charged with as well as using the government loan to buy a Mercedes-Benz car and upscale properties in Singapore.
With the help of a whistle-blower, the opposition presented, as evidence to support its claims, accounting and bank documents, the authenticity of which the NFC has never refuted.
The scandal sparked public outrage and prompted calls for Datuk Seri Shahrizat, 58, the Minister for Women, Community and Family Development, to resign.
Public anger also mounted at the seeming inaction of the authorities in the face of allegations by the opposition.
Mohamad Salleh, who was the head of food science at Malaysia’s Agriculture University, appeared calm as the charges were read out to him at the Kuala Lumpur Sessions Court.
He was accompanied by Shahrizat and one of their three children. They declined to speak to reporters.
The couple’s children, aged between 25 and 31, are all NFC directors. It is still unclear whether they will face criminal charges.
The NFC scandal has been widely seen as one of the biggest obstacles that the Umno-led Barisan Nasional (BN) coalition has to tackle before it can call the next general election.
With Shahrizat announcing her resignation on Sunday and her husband brought to court yesterday, speculation is rife that elections are near.
A number of Umno politicians were reported to have praised Shahrizat for announcing her intention to step down next month, saying it was done “in the interests of the party and the government.”
The opposition lauded the government for acting against Mohamad Salleh, but also urged it to recover the RM 250 million loan from the NFC.
Sceptics, however, urged the public to remain cautious about the case.
“Remember Kasitah Gaddam,” one netizen wrote on Twitter.
Tan Sri Kasitah was the first Malaysian Cabinet minister to be charged with corruption in 2004, just months before the BN romped to a strong victory at that year’s general election. He was acquitted five years later.
“Remember Kasitah Gaddam,” one netizen wrote on Twitter.
Tan Sri Kasitah was the first Malaysian Cabinet minister to be charged with corruption in 2004, just months before the BN romped to a strong victory at that year’s general election. He was acquitted five years later.
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