Friday, July 6, 2012

Datuk Chua Tee Yong: Pakatan Selangor overspending RM42million on land sale to Talam

Press Release by Datuk Chua Tee Yong on Pakatan Selangor overspending RM42million on land sale to TALAM

1. Today, I want to congratulate Talam for their exceptional business negotiating skills with the Pakatan Rakyat Selangor government in terms of debt recovery exercise.

2. The Pakatan Rakyat Selangor government has been claiming that the state government has benefited the rakyat in the Talam debt recovery exercise. However, I think the one that has benefit the most and smartest is Talam. Why do I say so?

3. Talam sold a 2,263 acres of leasehold land located at Bestari Jaya, to the Pakatan Rakyat Selangor government at a price of RM80,000 per acre, costing RM181 million.

4. However, a valuation report to Talam, dated October 11, 2010 by Mitra Valuers and Property Consultants Sdn Bhd, states that the leasehold land of 2,263 acres market value is only valued at RM139 million or RM60,000 per acre provided the land is being free from encumbrance. This valuation report is conducted for purpose of assessing market value for the sale of the land to Pakatan Rakyat Selangor government relating to debt recovery exercise.

5. So, Talam has successfully sold the land at higher price of RM 42 million above market value. The question I want to ask Talam, is how did they manage sell it at a price above market value considering the fact that this land is encumbered and is still charged to financial entities.

6. In addition, I am also made aware that out of the 2,263 acres of land, there are probably 1,013 acres of land, representing 44% of the land that have the following complications based on the valuation report:

I. 438 acres of the land are underwater lands. For this underwater portion, it requires additional RM 50 million to 100 million based on current estimates, just to fill up before any construction work can start.

II. There are also 575 acres of the land which is stated as ‘forest and ecology reserves’ which has little commercial value.

7. The question remains in mind now is how did Talam manage to convince Pakatan Rakyat Selangor government to buy this land at such a higher price of RM 42 million above the market value, although there is 1,013 acres of lands with complications and it is encumbered.

8. This deal gives rise to much speculation, either:

I. Talam is good in negotiation; OR
II. Pakatan Rakyat Selangor government is NOT aware of the true scenario; OR
III. Pakatan Rakyat Selangor government is incompetent; OR
IV. Rakyat’s money is NOT important.

YB Datuk Chua Tee YongMCA Young Professionals Bureau ChairmanDeputy Minister of Agriculture and Agro-based IndustryMember of Parliament for Labis
-MCA online-

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