Press Release 8 on the questionable deal between Selangor and Talam

On July 26, 2012, in Statements & Commentaries

Press Release 8 – 26th July 2012

1)       On 12 March 2010, PR Selangor government decided to acquire the following assets that are part of the RM676million from Talam as follows;

  Asset RM (million)
a) 400 acres of Ulu Yam land 18
b) 60% share in Ulu Yam Golf & Country club 4.2
c) 12 acres of land Puncak Jalil 12
d) 2,754.83 sq m shop lots in Ukay Perdana 7.8
e) 5 office units in Menara Pandan 2.7
  Total 44.7

2)       On 26 April 2010, PR Selangor government propose to dispose 400 acres of Ulu Yam land, 60% share in Ulu Yam Golf & Country club and 12 acres of land Puncak Jalil to Kumpulan Hartanah Selangor Berhad (KHSB), a state listed company. This is to settle the amount outstanding to KHSB.

3)       According to KHSB Board minutes on 3 May 2010 and 24 November 2010, KHSB rejected the proposal due to valuation reasons.

4)       On 6 June 2011, PR Selangor government propose for second time the Ulu Yam land, Puncak Jalil land and 60% share in Ulu Yam together with the 5 office units in Menara Pandan and shop lots in Ukay Perdana for RM44.7million

5)       On 29 June 2011, KHSB decided to acquire the lands proposed based on market valuation but did not agree to acquire the 5 office units in Menara Pandan and shop lots in Ukay Perdana.

6)       I am made to understand that KHSB has made a counter proposal for the assets above excluding the Menara Pandan office lots at RM31.6million compared to PR Selangor government at RM42million.

7)       KHSB was informed to accept all the proposed assets based on the proposed value at RM44.7million assets to offset the amount due to KHSB. It is also mentioned that PR Selangor government would not be able to offer any other assets or to settle the remainder amount due to KHSB in the short term.

8)       As such based on the above the following needs to be noted;

a)   In the 2010 Selangor state handsard, PR Selangor government claims that the RM44.7million assets can be easily disposed off and open tender will be conducted. However, why are the same assets being proposed to KHSB on numerous occasions and no open tender being conducted?

b)   Instead of selling to state companies e.g. Permodalan Nasional Selangor Berhad and KHSB, why isn’t the PR Selangor government disposing the properties acquired from Talam to non-state related company?

c)   PR Selangor government is supposed to identify land as a way to set off the amount due to Talam amounting to approximately RM30.5million. Why can’t the 5 office units in Menara Pandan and shop lots in Ukay Perdana amounting to RM10.5million be used to offset the amount due to Talam? 

9. From the above it appears that the state listed company, KHSB is more professional in its conduct in rejecting the PR Selangor government offer. We can also conclude that PR Selangor government is probably trying to force KHSB to acquire the assets at RM44.7million to avoid any losses.

YB Datuk Chua Tee Yong
MCA Young Professionals Bureau Chairman
Deputy Minister of Agriculture and Agro-based Industry
Member of Parliament for Labis

-MCA online-

 

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