Selangor says taking MCA to court over Talam claims
SHAH ALAM, July 4 — Selangor will sue MCA and all parties that have accused the state government of misusing RM1 billion in public funds, Tan Sri Khalid Ibrahim said today.
“Selangor will take legal action against MCA. The state executive council has decided to sue MCA and those who have made accusations against the state government with regards to the RM1 billion misappropriation.
“The decision to take legal action is because it is not only untrue and serious, but it has tarnished the good name of the Selangor government, Mentri Besar Khalid told reporters.
He declined to comment further, saying he has been advised by his solicitors to refrain from doing so until the matter has been addressed in court.
Khalid yesterday defended Selangor’s buyout of Talam Corporation Bhd’s debts two years ago, saying the restructuring of the troubled property developer’s debt restructuring was done “with basis”.
“Like I said we have shown what we have done in regards to the restructuring of Talam… we do not do something without basis,” he told reporters here.
Khalid said his administration will release a “white paper” on Talam Corp’s debt restructuring plan at the end of this year, during the Budget 2013 presentation.
MCA Young Professionals Bureau chairman Datuk Chua Tee Yong said yesterday Khalid’s administration had bought over Talam Corp’s RM676 million assets to clear Talam Corp’s outstanding debts.
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 Universiti Selangor (Unisel) and Permodalan Nasional Selangor Berhad (PNSB) RM277 million. It had also owed SAP Holdings — a subsidiary of listed company Kumpulan Hartanah Selangor Berhad (KHSB) — RM115 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 evidence.
“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 yesterday.
“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.