Instead of buying luxury condominiums in Bangsar and Singapore, the directors should have bought large tracts of land which would serve their primary purpose of breeding cattle. Had they bought land instead, they would have benefited from substantial appreciation in value.
Even with my simple mind, I can think of tracts of land divided into individual farms which could be rented out to individual farmers, on condition that they rear only cattle. Just imagine the image to any outsider who does not bother to check out the real deal. Or...
Instead of the reduced number of cattle from 8,000 to below 6,000 heads, they could have bought more cattle which could have given a favourable impression that they were doing the right thing. For say, Rm30 million, they could have bought 30,000 heads of cattle at Rm1,000 each, or 10,000 at Rm3,000 each, depending on the current price. I bet substantial increase in number would have silenced some critics, after all we are dealing with public perception.
Hypothetically, having a soft loan at 2% pa interest, the directors could have just borrowed from the government and put in FD at a conservative 3% pa, and enjoy a yearly Rm2.5 million in net income without doing anything. If a claim that the loan repayment does not set in until the full Rm250 million has been disbursed was true, then borrowing Rm249 million (just short of 1 million), they could have almost Rm7.5 million yearly! Enough for decent company cars and directors' remuneration. Just to show how ludicrous government aid could be easily abused if not properly monitored. (It has been reported that the loan at 2% pa is repayable over 17 years starting from 2013, after a grace period of 3 years, instead of the above notion 'that the loan repayment does not set in...' It is still a damn good deal by any standard.)
Recent statements by PM and other ministers did not make sense. What people expect from 'assets are frozen' is when bank accounts are frozen and directors effectively suspended from their positions and duties while the company is being run by someone appointed by the government and investigations are being carried out. But according to NFC official, it is 'business as usual' and the only thing frozen is probably the beef!
The NFC case has caught the attention of many people because of its ease at getting a large amount of soft loan at incredibly favourable terms, which was misused to pay overgenerous directors' remuneration, buy luxury car and condominiums. NFC has caused envy among fellow Malaysians. No doubt it is likely to be a liability to BN and a good point to use by PR in the coming general election. If the directors' rationale for buying condominiums is good investments, then everyone of us would like the government to lend us the money to do so.
By the way, the following could be a true story which shows financial returns from investment in property could be so rewarding. Maybe the directors of NFC were wise in this sense, but not when it involved public funds meant for a specific venture...
A Singapore millionaire, LKA, who secretly maintained a mistress in Hong Kong, bought a posh sea view apartment (in his own name) for her to live in, plus gave her a monthly allowance of US$5,000. The house cost him about US$700,000 in 2005. The affair lasted for 5 years.
He sold the house this year for $3.8 million, after they broke up. A quick calculation shows that after 5 years of a fling with the woman, he still had a net gain of $2.8 million plus 5 years of FREE SEX.
When his wife found out about this, he offers the $2.8 million to her. But she was still not happy ..., and she was very mad at him and gave him a big mouthful... She yelled at him at the top of her voice and said... "BLOODY IDIOT, STUPID FOOL" !!! ... Why the hell didn't you keep TWO MISTRESSES !!!!