According to a report in Malaysian Insider yesterday, Nor Omar has confirmed that the company National Feedlot Corporation Sdn Bhd (NFC) is controlled by Shahrizat’s three children. Izran Salleh, 27 is the CEO while Izmir, 31 and Izzana 25 are executive directors. The parent company of NFC is Agroscience Industries Sdn Bhd a company owned by Shahrizat’s husband, Datuk Dr Mohamad Salleh Ismail.
To the disbelief of many, Nor Omar who is the Minister of Agriculture and Agro-based Industry told reporters that “There is no conflict of interest. It is just a coincidence.” He said six companies had submitted proposals but did not elaborate on how the company linked to Shahrizat’s family was selected to undertake the project.
Nor Omar also did not explained why it is necessary to provide such a huge loan of RM250 million to this private company at an attractive interest rate of 2% for 17 years. The Ministry of Agriculture and Agro-based Industry has already allocated RM74 million for development of the project.
RM74 million was allocated to develop and operate a National Feedlot Centre (NFC) in Gemas, Negri Sembilan under the Ministry of Agriculture and Agro-based Industry. The rationale for the NFC is to develop a capability to produce more beef locally and cut down on imports. However, according to the 2010 Auditor-General’s report the NFC has turned into a mess.
A private company, National Feedlot Corporation Sdn Bhd (NFCorp) was appointed as the integrator of the project. However, not only has it not achieved its target of producing 8,000 cattle in 2010 it has also failed to undertake the following according to its agreement with the Ministry:
– set up an Entrepreneur Development Programme to train 130 satellite farmers
– build a livestock feed factory
– build a biogas factory to process waste into fuel for the farm
Between 2007 and 2010 a total of RM48.71 million out of the RM74 million allocated has already been spent. In addition, a soft loan of RM250 million was given to NFCorp at an interest rate of 2%.
Interestingly, according to media reports the parent company of NFCorp is owned by the husband of the Women, Family and Community Development minister, Shahrizat Jalil. Shahrizat’s children also hold key positions in NFCorp. One of her children is the CEO while two others are executive directors.
The big question is after spending so much taxpayers’ money on the project and providing a huge soft loan of RM250 million to a private company WHAT DOES THE COUNTRY GET IN RETURN? Is there more supply of beef in the market? Are they any cheaper? Are we now in a better position in terms of self-sufficiency?
According to some reports, roughly 1,500 cows need to be slaughtered each day to satisfy 40% of the demand. In the NFC, it was found that only 20 are slaughtered daily. In fact, smaller scale farmers who are not getting any government assistance are running bigger and more effective operation in beef production.
By now many people would have heard of the infamous night vision Marine binoculars bought by the Malaysian Marine Parks Department (JTLM) at the price of RM56,350. It was revealed in the Auditor-General’s report that the market price of this binoculars is only RM1,940 which means JTLM has overpaid 28 times the actual price!
Binoculars with zoomed price (from Auditor General Report 2010)
There is more to JTLM’s consistent overpayment for equipment:
– RM56,350 for another night vision Bushnell binoculars where actual price is RM2,827 (1,893% more)
– RM47,725 for radar set where actual price is RM8,255 (478% more)
– RM16,100 for LCD TV and DVD player where actual price is RM2,182 (638% more)
– RM11,845 for laptop and printer where actual price is 3,428 (246% more)
To rub salt into taxpayers’ wounds, the equipment purchased at inflated prices were not even delivered as specified in the agreement. The infamous night vision Marine binoculars was replaced with a binoculars without night vision costing only RM1,069. The laptop and printer were replaced with cheaper version which cost only RM2,137. And lastly, the supposedly RM16,100 LCD TV and DVD player were replaced with equipment which costs only RM195!
W T F
After the 2004 tsunami the Ministry of Science, Technology and Innovation (MOSTI) announced with fanfare the setting up of a Tsunami Early Warning System. The initial cost of the system is RM18.7 million that includes 3 floating buoys costing RM1.0 million each. But because of a change in the location of the buoys there was an additional cost of RM10.28 million.
Big shots admiring the tsunami buoy
According to the Auditor-General report, Tsunami Buoy 1 was deployed in March 2006 but was reported lost in February 2010. Tsunami Buoy 2 was deployed in December 2005 but was reported lost in May 2006. And what happened to Buoy 3? It was not deployed at all because permission was not granted by the Phillipines government to located in their waters! It was later reported that this Buoy 3 is defective.
A new buoy was purchased in Sept 2010 to replaced Buoy 1 but again cannot be deployed because the Indonesian government did not allow Malaysian vessel to enter their waters to install the buoy. This brand new buoy is now sitting in a warehouse.
So folks, if there is a tsunami approaching Malaysia in the future there will be NO warning from our Tsunami Warning System. And this is after spending more than RM29 million of taxpayers’ money.
The questions are: why is there an additional cost of RM!0 million for changing the location of the buoys. Why do they have to be located in the waters of neighbouring countries instead of Malaysian waters? If it is absolutely necessary, why was permission not sought and confirmed before proceeding with the project?
W T F
The RM160.74 million project in Sabah for building and equipping 300 computer labs for primary and secondary schools has failed miserably. Only 2 computer labs have been completed and handed over to the Ministry of Education.
Computer labs in Sabah? (fromAuditor General report 2010
The project was awarded to TimeCom Holdings Sdn Bhd and is supposed to last for 18 months from Oct 31, 2006 to Apr 30, 2008. After prolonged delays, only 2 of the labs were completed as of 2010 with the others in various stages of construction. Despite this appalling delays and shoddy work by the contractor, RM98.90 million of the RM113.74 million total construction cost has been paid!
Even though most of the computer labs have not been completed, the computers and other ICT equipment have been purchased and delivered. Consequently, most of these new equipment are stored in its original packing some for up to 3 years.
According to the Auditor-General report, some of the computers and equipment have been invested with termites.
Computers for termites (from Auditor General report 2010
Sabahan students, please go buy your own computer if you can afford it and don’t wait for the Ministry of Education to set up the computer labs. It will be too late.
W T F
(from Auditor General Report 2010)
Are you angry? Are you flabbergasted? Furious? Shaking your head? Pulling your hair? After reading what was revealed in the 2010 Auditor-General’s Report many Malaysians would be screaming (silently, if not out loud) at the wastage, blatant abuse, nonchalant excuses of the civil servants and employees of statutory boards in the handling of the hard-earned taxpayers’ money in their respective departments.
Every year we hear the same horror stories in the Auditor-General’s Report. Every year some joker will say action will be taken. But the very fact that the abuse is repeated again and again with greater audacity shows that no effective punishment has been meted out to offenders reported in previous reports.
Soon, these transgressions will be forgotten. The furor will die down until the next release of the Auditor-General’s Report. That is what they hope.
But this time we must keep the cauldron boiling. We cannot let the outrage die down until every offense has been punished. To this end, this blog is dedicated to reporting on the Wastage of Taxpayer Funds (WTF) not only as revealed in the Auditor-General’s reports but also other wastage of taxpayers’ money which may inexplicably escape mention in the A-G’s reports.
The WTF Report 