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Talam fiaso: State entity put at risk

 | July 12, 2012

PNSB was a debt-free company in 2009 and had RM76 million in cash balance and fixed deposits, says MCA.

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KUALA LUMPUR: MCA today alleged that the Selangor state government put a state entity in debt in its Talam Corporation Sdn Bhd’s debt restructuring exercise.

Young Professionals Bureau chairman Chua Tee Yong said that in 2010, the state government sold RM450 million worth of assets it purchased from Talam to Permodalan Negeri Selangor Bhd (PNSB), a wholly-owned subsidiary of the state government.

“The state sold plots of land in Bukit Beruntung 2 and Bestari Jaya, bought from Talam, to PNSB for RM450 million,” he told reporters here.

PNSB, Chua added, was a debt-free company in 2009 and had RM76 million in cash balance and fixed deposits.

“Based on a letter to the Registrar of Companies in May 2011, PNSB appears to have pledged a lot of its assets to borrow RM230 million from Maybank, where the interest itself is worth RM86 million,” he said, claiming that the loan was used to purchase the plots of land from the state government.

Chua, who is also the Agriculture and Agro-Based Deputy Minister, urged the Selangor state government to explain how it intended to help PNSB settle its loan totalling RM316 million.

“Did the state government take into account the high interest rate? Why didn’t the state government sell the land to private entities instead of burdening a state agency?” he asked.

Asked whether he had evidence that PNSB used the loan money to purchase the land from the state government, Chua said PNSB’s audited account for 2011 was not out yet.

“Though the account is not out yet, we can safely say the loan was used for the purchase. PNSB had lots of cash in 2009 and only borrowed after the acquisition,” he said.

On when he would lodge a report with the Malaysian Anti-Corruption Commission, Chua said: “Once I gather enough documents, I may go do it.”

Since last week, Chua had embarked on a series of exposé alleging that the state government had possibly used RM1 billion in public funds to bail out Talam.

Several days ago, Chua accused the PKR-led state government of overpaying Talam by RM57 million in acquiring 134.34 acres of land at Danau Putra in 2010.

He claimed that the state paid RM87.7 million for it when the land was only worth RM30.4 million.

Selangor Menteri Besar Khalid Ibrahim had since said that he would appoint independent accounting firms to review the debt restructuring exercise.


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