MCA Young Professionals Bureau chief Datuk Chua Tee Yong yesterday challenged the Selangor government to explain what he described as “the RM1 billion deal” involving Talam Corporation.
Chua, who is also deputy agriculture and agro-based industry minister, alleged that the deal between the Parti Keadilan Rakyat-led state government with the debt-ridden company was questionable as it had allegedly been brokered via dubious business transactions.
“Talam owes RM392 million to three state-linked companies. Instead of collecting the debt, the Selangor government purchased assets worth RM676 million from Talam.
Datuk Chua Tee Yong says Selangor has failed to file a white paper as promised earlier
Chua, who is also deputy agriculture and agro-based industry minister, alleged that the deal between the Parti Keadilan Rakyat-led state government with the debt-ridden company was questionable as it had allegedly been brokered via dubious business transactions.
“Talam owes RM392 million to three state-linked companies. Instead of collecting the debt, the Selangor government purchased assets worth RM676 million from Talam.
Chua said according to Talam’s annual report, the state government had purchased the assets between March 12 and April 9, 2010.
“This is a clear case of a bailout by the Selangor government using the people’s money,” said Chua at a press conference at Wisma MCA here yesterday.
“From this deal alone, Talam had walked away with over RM266 million in cash, which was paid to its bankers.”
Chua named the state-linked companies involved in the deal — Universiti Selangor, Permodalan Nasional Selangor and Kumpulan Hartanah Selangor Bhd.
In 2009, the Selangor state assembly approved a supplementary budget of RM392 million to Menteri Besar Inc (MBI), the parent of Selangor state subsidiaries, to facilitate the debt recovery exercise.
MBI would buy the debt from the state government and assume responsibility to recover the debt owing from Talam Corporation Bhd, a public listed company.
"However, the state companies involved have yet to receive the money owed to them by Talam, even though the Selangor government claimed to have collected the debts," said Chua.
"The state government must therefore explain the RM676 million asset acquisition from Talam and the status of the RM392 million budget allocation."
The Labis member of parliament also dared Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim to reveal all the transactions as PKR and its allies had claimed to champion transparency and the rights of the people.
"He (Khalid) has not fulfilled his promise made two years ago to present a white paper on the state government's controversial debt recovery exercise involving Talam Corporation Bhd," Chua said.
In an immediate reaction, Khalid said he would answer all questions on the Talam issue today, after the state executive council meeting.
Speaking to the press after the closing of the Selangor Budget dialogue session here yesterday, he said he needed to study the allegations before answering them.
"I don't know about it (the allegations) but I heard the amount has dropped a little from their earlier allegations."
He said the state would be releasing a white paper on the issue during the tabling of the Selangor Budget 2013 in the state assembly, which is expected to be in November.
Khalid said the white paper would show the restructuring of Talam, including the property development that had taken place since the takeover.
