Press Release (27th November 2012)
1. The white paper confirms what I have been exposing. That this is a bailout whereby at the end the rakyat is taken for a ride and the state GLC suffer. Why do I say it is a bailout?
2. PR Selangor government have not used/ accepted valuation through the JPPH as required by government procedure.
3. The white paper fails to explain this crucial issue and there is no attempt to provide reason why PR Selangor government decide to choose private valuer over JPPH valuation when it is against state procedure. Why is the PR Selangor government keen to accept a higher valuation rather than confirming/ consulting with JPPH on the valuation.
4. Bukit beruntung 2 land valuation according to JPPH is RM113million while according to Sulaiman and Co is RM 375million. The land is accepted at RM345million. Put the cart before the horse even though conversion not completed.
How private valuers are chosen, any tender and the cost of the private valuer and how does the PR Selangor decide when to use JPPH valuation or private valuer or why is private valuer preferred?
5. Mitra valuer valued the Bestari Jaya land in 2009 for PR Selangor government at RM88,000 per acre totalling RM199million.
However the same valuer Mitra valued the same land in 2010 for Talam at RM60,000 per acre totalling RM142million.
A drop of RM57million in one year and accepted by PR Selangor state government and no JPPH valuation is available.
6. No rakyat money used is a big lie. The cost is not RM420,000. There is no explanation on how RM266million is raised to pay off Talam bankers. PNSB have to take a loan of RM230million with interest cost of RM86million and the cost of KPMG and private valuer is also not stated.
A. Before transaction with PR Selangor government, Talam is still under PN 17. Talam was no longer designated as a PN 17 Company in June 2010 after the settlement agreement with PR Selangor government in March and April 2010.
B. Higher valuation is accepted resulting in a need for PR Selangor government to pay talam bankers up to RM266million. If the valuation for the assets is lower, (e.g Bukit Beruntung 2, Bestari Jaya) then the amount to be paid to Talam bankers will reduce or more assets could be obtained.
C. Providing a discount of RM36million to talam even though the previous settlement expired in 2008 and no explanation provided.
D. The debt recovery turn out to be as confirmed in the white paper, a transfer of assets from talam to PR Selangor state companies. 90% of the assets sold are to PR Selangor state companies. In fact KHSB has rejected attempts to accept the assets as previously disclosed.
Major developments are lacking and there is no income from the Ulu Yam hillslope land, office units, Bukit Beruntung 2 land and Bestari Jaya land.
But at the same time Talam is free from the debt due to PR Selangor state companies and is able to repay RM266million to its bankers.
E. The Edge article dated 15th March 2010, indicates that for Talam to be no longer designated as a PN 17 Company, the company had to satisfy in effect outstanding defaulted debts that stood at RM227 million as at 30th November 2009. When the PR Selangor State Government accepted/acquired the assets from Talam, PR Selangor State Government was required to settle a sum of RM266 million to Talam financers/bankers. Otherwise, Talam will remain as PN 17 company.
F. From the Talam debt settlement Talam saves RM24million interest yearly as disclosed in their circular while PNSB has to pay an interest cost of RM86 Million for duration of the loan and suffer a depreciation charge of RM1.2million yearly for the Bestari Jaya leasehold land.
G. After the debt settlement the PR Selangor State Government owes Talam approximately RM30 million. Why is it necessary for PR Selangor State Government to accept/acquire assets more than required to the extent that it now owes Talam money at the end of this exercise?
7. Till to date white paper indicate transaction is not over. Previously the PR Selangor government claimed that the white paper cannot be release as the transaction is not completed. This shows the white paper is release due to MCA exposure and the PR Selangor government has no intention of fulfilling its promise in 2010.
8. In fact the cost is higher as now the PR Selangor state government would have to use additional funds from the state to assist Unisel as the bulk of assets accepted from Talam have not been converted to cash and cash raised from GLCs like PNSB & PKNS, have been used to pay Talam bankers.
BY Datuk Chua Tee Yong
MCA Young Professional Bureau Chairman
Deputy Minister of Agriculture and Agro-based Industry
Member of Parliament for Labis