Narsco debt solution this week
TheSundaily by Tim Leonard, Sun, 02 Aug 2009
PETALING JAYA (Aug 2, 2009): The Rural and Regional Development Ministry hopes all parties linked to the debts incurred by the National Rubber Smallholders Cooperative (Narsco) can reach an amicable solution by this week.
A senior aide of Minister Datuk Seri Mohd Shafie Apdal told theSun recently that the minister was personally looking into the problem and hoped the cooperative "can negotiate an appropriate settlement with its creditors soonest possible"."The ministry is in the last stages of negotiations (with Narsco) to solve the problem and the outcome will be known (this week). The minister wants Narsco’s issues to end soon because he is unhappy with the negative publicity it has been receiving lately," he added.
Meanwhile, Shafie, when met at the GiatMara-JHEOA and Proton training partnership programme launch on Thursday, refused to comment on the Narsco issue.theSun had on July 15 highlighted how the cooperative, which was set up to help rubber smallholders in the country, chalked up debts of more than RM60 million to suppliers and business partners.After paying the bulk of its debts, Narsco still owes more than RM20 million.
theSun also highlighted the N. Appalanaidu, 55, who almost became a bankrupt after Narsco failed pay for the supply of latex.He filed a suit with the Kuala Lumpur High Court and won the case against Narsco's subsidiary company Narsco Commodities Sdn Bhd in 2005.theSun also carried a front page report on Tuesday revealing how the Rubber Industry Smallholders Development Authority (Risda) issued undertaking letters dating back to 2002 on behalf of Narsco.
The letter, signed by its chairman and director-general, promised suppliers that all monies owed by Narsco will be paid soonest possible.Narsco was formerly under Risda but both entities parted ways following mounting debts in 2006.The debts were blamed on poor management and fluctutaing rubber prices by Narsco's new chairman Datuk Jamaluddin Tot.
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