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?
VALUATION
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.
Example:
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?
Example:
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.
BAILOUT
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.
//END
BY Datuk Chua Tee
Yong
MCA
Young Professional Bureau Chairman
Deputy
Minister of Agriculture and Agro-based Industry
Member
of Parliament for Labis
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