MCA questions Selangor’s Talam debt buyout
UPDATED @ 08:14:44 PM 03-07-2012
MCA Young Professionals Bureau Chairman Datuk Chua Tee Yong claimed that Talam’s debts with the state companies were still outstanding, and produced KHSB’s 2012 annual report as proof. — Picture by Saw Siow FengKUALA LUMPUR, July 3 — Selangor’s RM676 million debt buyout of Talam Corporation Bhd two years ago is now being questioned by the MCA, which said today the state government’s units have yet to recover money owed by the troubled property developer.
MCA Young Professionals Bureau chairman Datuk Chua Tee Yong said Tan Sri Khalid Ibrahim’s administration had used RM392 million of state funds and further acquired RM284 million in additional assets to clear Talam Corp’s outstanding debts, totalling an estimated RM676 million.
“PR Selangor Government must explain to the rakyat the acquisition of the RM676 million worth of assets and the usage of RM392 million allocation which totals to the RM1 billion questionable deal,” Chua told reporters here.
The Selangor state assembly approved a supplementary budget of RM391 million for Mentri Besar Incorporated (MBI) in November 2010 to buy over Talam Corp’s debt incurred after several failed real estate ventures with state agencies.
Talam Corp, now known as Trinity Corporation Berhad, had owed University Selangor (Unisel) and Permodalan Nasional Selangor Berhad (PNSB) RM277 million as well as SAP Holdings — a subsidiary of listed company Kumpulan Hartanah Selangor Berhad — RM115 million, or a total sum of RM392 million.
The property developer’s annual report in 2010 stated that Selangor also purchased assets worth RM284 million from the company in addition to recovering its RM392 million debt, or a total of RM676 million.
Chua claimed that Talam’s debts with the state companies were still outstanding, and produced KHSB’s 2012 annual report as proof.
“Based on KHSB’s annual report, it shows RM115 million is still outstanding from the Selangor government. This shows that no payment was received by KHSB, the state company,” Chua said.
“Unisel has also not received any money. There is no need for Unisel to sell assets to raise RM30 million for its usage if they did receive money from Talam Corp,” he added, referring to Selangor’s announcement last month that it would liquidate assets to help Unisel students whose student loans had been frozen.
Chua said that questions also arose over the RM300 million used in Geran Selangorku community development grants which Selangor claims have been funded by the Talam debt recovery.
The Labis MP said it was illogical for the RM300 million to have come from these assets as there were records to show Talam assets were “developed, liquidated or sold off.”
