Why did NFCorp say it had no beef production to pay loans?

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NFCorp Cited Government's Failure to Construct Export Quality Abattoir as Reason for Lack of Beef Production and Inability to Repay Loans

National Feedlot Corporation Sdn Bhd (NFCorp) executive chairman Datuk Seri Mohamad Salleh Ismail stated that the company's lack of beef production, and consequently its inability to repay a RM253.6 million loan, was due to the government's failure to fulfil its obligation to construct an Export Quality Abattoir (EQA) as stipulated in the project's implementation agreement. This omission prevented the National Feedlot Centre (NFC) project from becoming successful and generating the necessary revenue for loan repayment.
Government's Obligation Under Schedule 8

Mohamad Salleh asserted that the NFC project would have been successful if the government had adhered to Schedule 8 of the implementation agreement. This schedule outlined the government's responsibility to construct an EQA, a facility crucial for the project's intended beef production and export capabilities. The absence of this abattoir meant that NFCorp could not proceed with beef supply and production, which had been halted since May 2009 when the government suspended the project.
Dependence of Loan Repayment on Beef Production

The ability of NFCorp to repay the RM253.6 million loan was directly contingent on beef production. Mohamad Salleh explained that the company did not breach the loan agreement by failing to pay the first instalment in 2012 as scheduled because payment was dependent on the project generating revenue from beef sales. Without active production, the financial capacity to meet repayment obligations did not exist.
Financial Constraints for EQA Construction

The cost to construct the necessary EQA was estimated to be approximately RM60 million. Mohamad Salleh indicated that NFCorp did not possess these funds, reinforcing the dependency on the government's commitment to build the facility as per the agreement. Furthermore, NFCorp had formally requested a deferment of loan payments from the government, acknowledging their financial predicament linked to the stalled production.

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Why did NFCorp say it had no beef production to pay loans?

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