Wednesday, August 15, 2012

Press Release 15 – 15th August 2012

1. Today I receive new information about the Talam Deal. Again it reinforces the continuing lies after lies of the Talam deal by the PR Selangor government. It looks like the Talam deal has become the mother of all lies committed by the PR Selangor government.

2. Based on the document dated 14 July 2009 by Menteri Besar Selangor (Pemerbandanan) 1994 the following is mentioned in the document;

-         A new committee known as Talam Task Force Committee is to be formed and headed by Ybhg Datin Paduka Low Siew Moi to negotiate and to implement a new global settlement for the recovery of all outstanding debt from Talam.

-         All settlement agreement signed earlier between state government agencies with Talam shall be terminated and cease to have any effect and new terms of settlement shall be negotiated to recover all amount outstanding from Talam.

3. As such the document clearly shows that PR Selangor government is aware that there was settlement agreement by the subsidiaries of the state government to collect debt from Talam.

4. This shows PR Selangor government is lying and misleading the public when PR Selangor government says all the debts are hidden and no state subsidiary attempt to recover the debts from Talam.

5. All previous settlement is terminated hence all the assets accepted by PR Selangor government is based on PR Selangor government decision and has nothing to do with previous state government. 

6. Thus the land underwater or with ex mining pond Danau Putra & Bestari Jaya, office lots in Menara Pandan, retail lots in Ukay Perdana , Hillslope ulu yam land, 60% shares in Ulu yam and country club sdn bhd accepted from Talam is due to the decision of PR Selangor government and not a legacy of the BN state government fault.

Why are these assets accepted by PR Selangor government?

7. In addition, the value of each asset accepted is also determined by PR Selangor government. Thus what is the state valuation through the Valuation Property Service Department (JPPH) for each of the assets that are accepted as a debt settlement. What is the state valuation of Bestari Jaya land, Danau Putra land, Ulu yam land, Menara Pandan office lots , Ukay perdana retail lots, 60% shares in Ulu yam and country club Sdn Bhd? Why is there an apparent overvaluation of RM107million to RM165million?

8. Moreover why is RM36million early incentive discount still given to Talam though Talam has not been able to fulfil the terms and condition in the settlement agreement dated 8 March 2007? The agreement is already terminated by PR Selangor government thus what is so special that the RM36million discount is still granted to Talam?

9. I have also highlighted that BN government made effort to collect debts via the 8 March 2007 supplemental settlement agreement. It was clearly stipulated in that agreement that the previous state government is not involved to clear the land encumbrances.

10. However, PR Selangor government has terminated all the settlement agreement and under the new settlement agreement in 2010, PR Selangor Government has to settle an additional amount of RM296million.

11. RM266million is to be paid to Talam Bankers to clear the encumbrances of the land accepted. The remainder RM30million will be settled by PR Selangor government, via a land to be given to Talam. In order to raise money of RM266million some of the lands are sold to PNSB and a loan is raised resulting in an interest cost of RM86million.

12. Furthermore as all previous settlement agreement has been terminated, PR Selangor government could not take actions against Talam upon expiry of 8 March 2007 supplemental settlement agreement when Talam fail to repay the debts. Instead 2 years was spent signing a new agreement in March 2010 and April 2010.

13. This document clearly shows that PR Selangor government must be responsible for all of its own action for the debt settlement;

-         Why after two years, the white paper cannot be released as promised?

-         What is the state valuation of each assets through the Valuation Property Service Department (JPPH) ? Why is there an apparent overvaluation of RM107million to RM165million?

-         Why are these assets accepted;

a)   Bestari Jaya land that has underwater or forest & ecology zone;

b)   Danau Putra land that has ex-mining pond possibly 80 to 100 feets;

c)   Menara Pandan Office units with low occupancy and poor marketability;

d)   Ukay Perdana retail lot that are vacant;

e)   Ulu yam Hillslope land Class 3 & 4, and

f)    Shares of Ulu yam country club sdn bhd with only asset of hillslope land in ulu yam.

-         Why is a discount RM36million being offered to Talam though Talam had failed to settle early and the settlement agreement dated 8th March 2007 has been terminated?

-         Why is PR Selangor government willing to fork out additional RM296million for Talam bankers and Talam? The funds to pay the bankers are obtained through sales of land to PNSB resulting in PNSB incurring an interest cost of RM86million

-         Why did PR Selangor government lied that all debts hidden and there is no actions taken by any state company to collect debt?

-         Why did PR Selangor government lied that they have to abide to the previous agreement of BN when all the agreements are terminated?

-         Why is PR Selangor government not transparent in disclosing all the details of the Talam deal although according to state hansard 9 November 2009, it is stated that they will be transparent in the whole deal?

14. In short the whole deal show PR Selangor state government is

·        Incompetent

·        Lacks of accountability

·        Lacks of transparency

15. To the PR Selangor government, CAT is just a political slogan to hoodwink the Selangor rakyat.


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

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