Monday, January 30, 2012

NFC Directors Laughing All The Way To The Bank

Hantu Laut

No personal guarantee!

The giver of the loan should now carry the burden of responsibility to the taxpayers.If this isn't abuse of the first order what would you call it? It's not the recipient fault if the government acted so stupidly.Those involved in giving out the loan should also be investigated.

It is now clear why the money was used for what it is not intended for.This soft loan is softer than soft, abnormally low interest rate, no collateral, no director's personal guarantee, it is as good as giving the money away for free.

"The loan agreement has been signed. If we don’t pay back, we will be declared bankrupt or locked up in jail. We will pay every sen plus interest. The question of misappropriation does not arise,” said Wan Shahinur Izmir, who is minister Datuk Seri Shahrizat Abdul Jalil’s son.

Come on man! Who are you kidding? How is the government going to sue you personally for recovery of the loan if you did not sign personal guarantee?

My company had borrowed tens of millions before from banks and all directors were made to sign "Joint and Several Guarantee" in spite of more than sufficient securities given to the banks.

If the company folded and can't pay up the loans and there happen to be diminution in the value of the securities, the directors are fully liable for the amount including all interests and if they failed to make good the banks would declare every director a bankrupt.

The government, probably, can charge the directors for CBT (Criminal Breach of Trust), which, sometimes, is difficult to prove in a mismanagement.

Misappropriation is a crime, mismanagement is not.Buying properties under the company's name for investment or even to house working directors is also not a crime, it becomes a crime only if they are in your personal name using company's fund to purchase.It would also not be a crime if the company gave you a housing loan duly approved by the BOD (Board of Directors).

You see, whichever way the government is going to be the biggest loser if the project failed.

Read the full story here.


Freddie Kevin said...

Dear HL,

It will be good if the Govt can review ALL Govt contracts, projects and loans that has unfavourable conditions as far as the taxpayer is concerned.

Better to do so now rather than being shamefully exposed. Worst still by the opposition.

That said, the report by TMI is laughable as far as the opposition PAC members are concerned.

So what were they doing in the PAC sittings?

Goyang kaki, diam and not making pertinent enquiries.

Now come out and say ini takde and itu takde.

Thank you

Pak Zawi said...

It is not the government who is going to lose, it is the rakyat that will ultimately lose. So much money is being plundered for so many projects that will not benefit the rakyat in the long run, I don't know why we are keeping this silly good for nothing leaders in the driver's seat of the Government. The poor rakyat will remain poor while some cronies and those in the right loop will get richer.
It was about a year ago that RPK wrote in his blog about this scandal and I am wondering why he isn't coming up with an 'I told you so' post snubbing us for not taking notice of what he said.

SM said...

Bro Hl,

Salam & Gong Xi Fa Cai!
The ultimate loser is the Rakyat (i.e. Tax Payers)!
This whole deal stinks to high heaven.
Of course the loan is's for Sharizat's Hubby & Childrem muh!