NFCorp sues Public Bank for leak that led to loss of reputation

KUALA LUMPUR, May 22 – The National Feedlot Corporation (NFCorp) said today it was suing Public Bank Berhad for loss of reputation as a result of an alleged breach of its security that resulted in the private banking information of NFC, its chairman and related companies being "exposed to the world at large."

In a statement issued today, NFCorp alleged that Public Bank Berhad had breached the Banking and Financial Institutions Act 1989 (BAFIA).

"The security breach by Public Bank Berhad had allowed PKR Strategy Director Rafizi Ramli to dramatise and sow the seeds of distortions and misrepresentations to defame and damage the reputation and credibility of NFCorp, its related companies and its chairman with the government and general public as well as with the business and financial communities," NFCorp said.

PKR accused NFCorp last week of “hunting down” alleged whistleblowers to “put the lid on” claims the company, owned by Datuk Seri Shahrizat Abdul Jalil’s family, abused a RM250 million federal loan.

The party held a press conference on May 14 with a former Public Bank clerk, Johari Mohamad, who said he has been “pressured for months before resigning” on May 2 after a domestic inquiry was held due to a complaint by NFCorp chairman Datuk Seri Mohamad Salleh Ismail.

The 41-year-old has also been summoned by Bank Negara investigators to provide information under the Banking and Financial Institutions Act (BAFIA), under which NFCorp has lodged complaints over bank details exposed by PKR.

In its summons, NFCorp stated that private and confidential banking information of NFCorp, its related companies and its chairman had been exposed to the world at large.

The statement added that the lives of the directors and family of the plaintiffs had also been exposed to danger.

NFCorp lawyers said the move by their client to institute this legal suit would hopefully serve as an alert to banks and financial institutions of their duty and obligation to safeguard the confidential information of their customers in all manner as well as to ensure their customers’ safety from harms way.

NFCorp directors have denied PKR’s claim that they used the RM250 million in public funds meant for a national cattle-farming scheme to leverage personal loans to buy eight office units worth RM12 million in a new development.

Salleh has filed complaints to Bank Negara and police reports accusing Rafizi of slander and breaching financial laws by distributing private banking details of company directors, which include Shahrizat’s three children, and other companies belonging to them.

NFCorp was tasked with running the controversial National Feedlot Centre (NFC) that the government recently said it will tender out to another company.

According to documents from one bank, which Rafizi said were provided by a whistleblower, NFCorp directors made two deposits totalling RM71,486,589 under the company’s name and another deposit totalling RM1,872,254 under National Meat and Livestock Corporation.

Two other documents showed that her family members had obtained a credit facility worth RM197,338 under Agroscience Industries, a RM4,391,240 loan for a property purchase and that Salleh was named as guarantor for another loan of RM663,743.

NFCorp also said last month its lawyers will sue the bank which failed to comply with BAFIA, on top of earlier libel suits already filed against Rafizi and Wanita PKR chief Zuraida Kamaruddin.

The firm hit the headlines last year when the Auditor-General reported that it had missed production targets.

Shahrizat, who was a minister when the project was awarded to her family in 2006, quit the Cabinet in early April after allegations she and her family used a RM250 million soft loan meant for the cattle-rearing project to finance land, property and other unrelated expenses.

On March 12, Salleh, pleaded not guilty in the Sessions Court here to two counts of criminal breach of trust involving RM49.7 million with regards to the purchase of two condominium units.

He also pleaded not guilty to two other charges under the Companies Act.