Previously, Chua Tee Yong revealed the Selangor-Talam’s RM676 million deal consist of overvalued land that is underwater or in forest and ecology zone; overvalued land that is ex-mining pond; overvalued office units and retail lots that are vacant; and overvalued Class 3 and 4 hillslope land.
This included lands at Bestari Jaya (overvalued by RM100 million]; Danau Putra (RM57 million); Menara Pandan office lots (RM1.9 million); and hillslope Ulu Yam land (RM5.3 million).
Latest exposure from Chua showed the Selangor government have paid RM4.2 million for 60% shares in a inactive company which was majority owned by Talam. The inactive company, namely Ulu Yam and Country Club Sdn Bhd owns a 199-acre in Ulu Yam – at RM5 million (valuation done by valuer Sulaiman & Co). The 60% shares should not worth more than RM3 million but the Selangor government had again “generously” paid RM4.2 million for it.
Chua further added that the company had not commenced operation and has liabilities of RM807,000. He also said that the land was Class 3 and 4 slope, which means above 25 degrees and above 35 degrees respectively.
(The only development allowed for Class 3 and 4 is national infrastructure projects. In 2009, the state government froze all development plans on Class 3 and 4 land pending new guidelines on hill slope development.)
“Did the Selangor government conduct an independent valuation carried out by the state valuer?”
“Was an independent financial and legal due diligence carried out?”
“From this deal, we can see there is lack of transparency and competency by the Selangor government for accepting overvalued shares of a company whose only assets is hillslope land and having liabilities of RM807,000. This is serious as the state is using taxpayers’ money,” he said.
Malaysia People want to find out the truth as whether the Selangor government has misused the taxpayers’ money to bail out its crony. This will be the most condemned bail-out plan if the overvaluation is given at the expense of the People’s welfare especially in the midst of the news that 1000 Unisel students have no place to stay because the maintenance and operations costs of the hostel are not paid.
Malaysia People question the rationale of the Selangor government for the overvaluation and demand the White Paper as well as the State’s intended development plan in order to justify the overvaluation should be given to Talam and not the Unisel students.