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Chua: S’gor overpaid RM57m for Talam land

 | July 10, 2012

MCA's Chua Tee Yong claims Selangor government may have 'overpaid' RM57 million for a another piece of Talam land.


KUALA LUMPUR: MCA alleged that the Selangor state government overpaid by RM57 million in acquiring another piece of land, formerly owned by Talam Corporation.

Young Professionals Bureau chief Chua Tee Yong told reporters that the Selangor government acquired 134.34 acres of Danau Putra land at RM87.7 million in 2010.

(This transaction was part of the RM392 million debt settlement between Talam and the Pakatan Rakyat-run Selangor government.)

Chua said the land was divided into three portions: Plot A, Plot B and Plot C & D.

They were acquired at the (rough) price of RM18.3 million, RM43.3 million and RM26 million respectively, at around RM15 per square foot.

Chua said that the 66.35-acre Plot B was auctioned off at RM15 million on Sept 7, 2010 by Bangkok Bank Bhd.

(According to him, Plot B was advertised in the New Straits Times on Aug 20, 2010, and that the minimum reserve price was RM15 million.)

This, he added, would value Plot B at RM5.20 psf.


Going by this, he said that instead of being acquired at RM87.7 million, the land should have been valued at RM30.4 million.

“Assuming [that] all four plots of land are valued at RM5.20 psf, based on auction price, the question that has to be asked is whether… Selangor… overpaid by RM57 million.

“With all these questions in mind, it is not difficult to think that this is not a sweetheart deal,” he said at the MCA headquarters here.

He said this while holding a copy of the Plot B auction contract, valuing the land at RM15 million.

He said that if the land was considered a prime area, the auction price would not be far off from the original.

Unanswered questions

Responding to DAP-Petaling Jaya Utara MP Tony Pua’s rebuttal of his claims, Chua said that the former was being misleading.

Citing his previous Bestari Jaya RM42 million “overpaid” allegation, the Labis MP said: “He [Pua] is not able to answer why there is a difference for the land.”

“…Pua’s whole explanation does not answer a lot of questions.”

He also asked why none of the DAP executive council members in the Selangor government have come up with an explanation on the matter yet.

Last week, Chua accused Selangor of misusing public funds to bail out Talam.

He claimed that Selangor had done so via a RM392 million supplementary budget passed in the State’s Legislative Assembly in 2009.

Chua added that the state bought an additional RM676 million worth of assets from Talam.

In response, Pua said that Menteri Besar Incorporated (MBI) took over RM676 million of assets from Talam to clear the latter’s debts with state subsidiaries.

Following Chua’s revelations, the Selangor government has announced that it intends to sue MCA over the allegation.

Also read:

MCA exposé ill-planned, without focus


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