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THE NATIONAL FEEDLOT CORPORATION SAGA
The National Feedlot Corporation Saga has been in the news ever since the Auditor General’s report highlighted the fact that the NFC was only successfully operating at 41%. In fact, the AG should have stated that it was operating at a failure rate of 59%.
There are two aspects to this state of affairs. One is a question of Policy by the Government, with regards to setting up such a huge Feedlot operation without proper study.
The other is the question of Criminal Breach of Trust (CBT), with regards to the financial and fiduciary responsibility of the operators of the NFC.
The first part is dealt in the broad report that is attached, as a Policy paper. The second part, CBT, is the question that is being debated presently, and being investigated by the Police and MACC.
The Criminal Beach of Trust focuses on the word Trust. A project and funds provided to an enterprise and its operators is based on trust. Trust to perform diligently and honestly, and to keep with the purpose of the project, to ensure its success.
The NFC has failed miserably in this aspect.
It has broken the Trust that was implicit in its engagement to produce beef for the nation. The Trust it was given to increase beef production was betrayed when it employed the loan funds to invest in any other business, in this instance, the purchase of two condominiums, which the NFC itself admitted.
The funds invested in the condominiums could and should have been invested in producing its own calves and its own feed for the fattening operations.
After all, the NFC was given about 5000 acres of land to carry out the operation. In as much as the land itself was considered marginal, many types of fodder crops could have been grown as feed for a multiplication programme that would have given value addition to the operation of NFC. This is especially so in the long term.
Quite obviously the operators of the NFC did not have sufficient knowledge of the industry, nor did they seek the advice of qualified consultants, with more than sufficient knowledge to assist the development.
In conclusion, the NFC and its operators should be charged for CBT, removed, and a group of competent and qualified consultants appointed to run the operations, after careful review and study of the present set up.
CRUSADE AGAINST CORRUPTION