MACC Says No Case to Talamgate?

After three months of revelation by MCA Young Professionals Bureau Chief Datuk Chua Tee Yong that the Selangor Government had bailed out financially distressed Talam and had acquired Talam’s assets in a debt restructuring exercise at much higher prices than officially valued, the Malaysian Anti-Corruption Commission (MACC) finally conducted its preliminary investigations.

 
 

In fact, anyone with little financial knowledge can tell that the bail out of Talam by Selangor goverment is clear  which involved Bestari Jaya land (overvalued by RM100mil), Danau Putra land (overvalued by RM57mil), Menara Pandan Office lots (overvalued by RM1.9mil), Ulu Yam land on steep hillslopes (overvalued by RM5.3mil), 60% shares in Ulu Yam Golf and Country Club (overvalued by RM1.2mil) and six parcels of land in Bukit Beruntung 2 (overvalued by RM232mil).

 
 

But what took MACC so long to commence their investigation?  Is MACC scared of the pressure after Teoh Beng Hock incident which had put a halt to their investigation?

No doubt, the Selangor government have been trying all means to convince the People that there is no misuse of public funds and it is a “commercially sound” debt recovery process.

However, the People are not as foolish as the Selangor government thinks they are.

The problematic lands and bank borrowings taken by the Selangor government to offset against the debt owed by Talam is as “naive” as the Selangor government took a Proton Saga at the valuation of RM1 million to offset against a debt of RM1 million.  On top of that, the Selangor government assumed millions of bank borrowings which cost RM86 million interests.  Can there be another sweetheart deal like this in the world?

Other than the questionable overvalued land deals, on 3 Oct MCA Young Professionals Bureau Chief Datuk Chua Tee Yong further revealed that two Selangor-owned companies, Universiti Selangor (Unisel) and Permodalan Negeri Selangor (PNSB) were paid only RM10 each in the Talam debt recovery exercise despite being owed RM248 million and RM28 million respectively.

Chua has questioned on the rationales of the Talam debt collection exercise led by the Selangor government when the move is believed to have caused millions of losses to the University. Selangor Umno recently revealed that Selangor MB Tan Sri Khalid and the state financial officer had signed the audit report of the university on Aug 27 which showed Unisel had sustained losses in the past three years with a deficit of RM1.63mil in 2008, RM13.55mil in 2009 and RM39.68mil in 2010.

“Unisel’s financial condition has worsened as Unisel only received RM10 for the Talam debt collection exercise instead of RM248 million,” Chua said, adding that a RM36 million discount was also given to Talam although it did not fulfil a settlement agreement that expired in 2008.

Besides that, Chua has also questioned the financial wisdom of Selangor State government when PNSB is apparently now saddled with multi-million debts for some land alleged to be overvalued.

“PNSB has received only RM10 and is now having a loan of RM230 million with interest and costs of RM86 million while Talam Corp saves RM24 million yearly.”

MCA Chua also claimed that the state government had breached the govrenment valuation procedures. He said the state government was supposed to use the valuation by the Finance Ministry’s Valuation and Property Services Department (JPPPH) but the assets (Bukit Beruntung II) were still acquired at grossly inflated prices.

“Of the total assets accepted or acquired by the state government amounting to RM676mil, there is an apparent overvaluation of RM339mil to RM397mil,” he said.

On July 3, Chua had challenged the Selangor government to explain how its exercise to recover a RM392mil debt from Talam ended in questionable deals worth over RM1bil.

Meanwhile, Selangor MB Khalid insisted his administration had not relieved Talam Corp of its debts as claimed, but instead had recovered monies that the troubled property developer owed the state’s subsidiaries.

Khalid’s administration had appointed KPMG Transaction and Restructuring Sdn Bhd (KPMG) in July to review its RM392 million debt recovery exercise following allegations by MCA that the state government’s dealings with Talam.

Khalid said from the review exercise, KPMG is of the view that the Selangor state government made a sound commercial decision under the circumstances at that point in time in relation to the settlement arrangement.

But Khalid said the audit firm did not scrutinise the alleged misuse of public funds as it was deemed irrelevant.

It should be noted however that KPMG admitted that some of the plots of land in the settlement had been overvalued, but that there are circumstances and details explained in the full report.

What is obviously missing and remain unanswered today is the basis of adopting the RM676m by Selangor government, how the values of each assets are determined or negotiated, why the Selangor government has to end up owing to Talam a sum of RM30.5m from the debt collection exercise and why wasn’t KPMG engaged to check if the allegations of misuse of public funds were true.

The People want MACC to reveal the truth whether the valuation through the JPPPH was conducted for each of the assets acquired or accepted by the Selangor government.  The People hope the Selangor government will not demonise or interfere in MACC’s investigation as the Selangor government have been granted enough time to disclose the White Paper and the failure to comply with valuation from JPPPH which they had failed to do so.

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21 thoughts on “MACC Says No Case to Talamgate?

  1. I don’t think MACC will bring anyone from Selangor to the court. They are scared of the political pressure from the opposition party after Teoh’s incident.

    • Khalid has breached the conditon for the Talam deal!! It is a shame if there is no case!!

      Just check out the 4 conditons laid down by Yeoh said about the Talamgate back in State Assembly on 9 Nov 209! http://dun.selangor.gov.my/v2/hansard

      YB PUAN HANNAH YEOH TSEOW SUAN: Subang Jaya menyambut baik usaha Kerajaan Negeri mengutip hutang yang sepatutnya dibayar oleh pihak Talam. Hasil Negeri akan meningkat dan manfaatkan rakyat. Saya kurang faham mengapakah Kerajaan Barisan Nasional dahulu tidak menghiraukan kutipan hutang yang begitu banyak. Dua kini boleh mempertingkatkan kualiti kehidupan rakyat dan boleh merangsang ekonomi negeri. Ini baru
      satu contoh Syarikat yang mempunyai hutang kepada Kerajaan Negeri. Berapa lagi JV yang merugikan negeri di bawah pemerintahan Kerajaan Negeri Barisan Nasional dahulu. Kalau nak bersihkan semua projek yang merugikan sebelum ini bertahun-tahun pun tak boleh habis. Tuan
      Speaker, Anak-anak Syarikat Negeri seharusnya memperkasakan calon mereka membuat usaha sama ‘joint-venture’ dengan izin bersama pemaju-pemaju persendirian atau pun pihak Syarikat yang lain. Tanah-tanah Kerajaan diberi begitu sahaja kepada pihak luar tanpa sebagai tindakan diambil apabila pihak luar tidak menunaikan janji kontrak mereka kepada negeri.
      Persoalannya sekarang walaupun ini satu usaha yang baik untuk mengutip hutang Kerajaan Negeri harus memastikan bahawa:-
      1) Tanah-tanah kepunyaan Talam yang diberi mesti bebas daripada gadaian ataupun pajakkan kepada pihak ketiga.
      2) Apakah keupayaan sebenar Talam untuk membayar balik RM391 juta ini dan bilakah ini boleh ditunaikan?
      3) Kerajaan Negeri juga harus mengenal pasti liabiliti kewangan Talam ini kerana boleh menimbulkan kerugian kepada Negeri.
      4) Sekiranya Talam tidak menunaikan janji untuk membayar hutang saya cadangkan MBI haruslah memastikan sebarang projek Talam dipantau dan jika perlu dibekukan sehingga pembayaran disambung.
      Akhir sekali, saya mengambil kesempatan mengucapkan tahniah kepada Dato’ Menteri Besar atas usaha dan kebijaksanaan beliau dalam mengaturkan proses pengutipan ini.

      • Tanah-tanah kepunyaan Talam yang diberi mesti bebas daripada gadaian ataupun pajakkan kepada pihak ketiga???

        Millions of bank loans were transferred to the state government at the expense of its people lor..

      • May be what Hannah means is the Talam land must be charged to third party? This is what the pajakkan kepada pihak ketiga is translated??

      • If the state government made such a big careless mistake which costs hundred millions loss, they should step down immediately.

    • SHAH ALAM, Sept 7 — Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said an audit firm engaged to review the state government’s 2009 bailout of Talam Corporation did not scrutinise the alleged misuse of public funds as it was deemed irrelevant.

      He said this was because the audit firm attested that the state government made a sound business decision on the debt settlement process to recover RM392 million owed by Talam by adopting best method and practices in accordance with the law

      you all cacat minded! there is nothing to investigate!

  2. The GLCs are desinged to receive RM10 only from Talam deal to help MB achieve politial mileage!! Amount collected will go to microcredit scheme rather than Glcs. Check out what has been confirmed by Azmin Ali during State Assembly 12 July 2010!! http://dun.selangor.gov.my/v2/hansard

    Btw, Azmin will be a better MB because he would not burden Glcs to buy Talam land like what Khalid did!!

    Puan Speaker,…………Saya ingin mengetahui sejauh mana kejayaan usaha Kerajaan Negeri untuk mengutip hutang dari Talam Corporation. Apakah usaha Kerajaan Negeri untuk mewajibkan Talam Corporation untuk mengambil tanggungjawab bersama mencari pembelipembeli untuk membeli hartanah-hartanah Talam Corporation pada harga pasaran semasa dan tidak hanya membebankan Kerajaan Negeri atau anak-anak syarikat Kerajaan Negeri sahaja untuk membeli hartanah-hartanah yang berkenaan. Kerajaan Negeri telah mengumumkan bahawa kutipan hutang yang pertama berjumlah 50 juta ringgit akan dimanfaatkan untuk skim mikro kredit bagi kepentingan peniaga-peniaga kecil di kalangan rakyat Negeri Selangor. Skim ini telah diumumkan 4 bulan yang lalu namun pelaksanaannya masih kekal di atas kertas. Saya ingin bertanya apakah status skim mikro kredit ini? Masih kekal sebagai mikro kredit atau sudah berubah menjadi mikro debit. Saya menuntut supaya pelaksanaannya dapat disegerakan.

    • No point to talk so much… at the end of the day, I bet MACC will say no solid evidence to charge corruption, even though there is an overvaluation… otherwise the opposition party will use Teoh Beng Hock’s case to sabotage MACC for being unfair.

      Don’t you see that MACC is so quick when there is allegations on BN people nowadays… all these are political pressure created by the opposition party..

      • Hehehe! I mean the glcs are ripped off! Nobody understands due to typo or nobody agrees?

      • Dear X,
        Either ways you are also right.
        The inadvertently spelled “GODS” is actually correct as PR always deemed themselves as GODS as they can do no wrong and they are ALWAYS RIGHT.

      • “PNSB has received only RM10 and is now having a loan of RM230 million with interest and costs of RM86 million while Talam Corp saves RM24 million yearly.”

        Is the above statement true or not? If so obvious, MACC don’t know how to check?

  3. 赵事件让反贪委员会不敢调查反对党了。。风水轮流转。。 万一卡立跳楼,到时反贪又会被人说了。。。

    • i heard the white paper is just public relation paper; it is not a detailed diagnosis as it should be..people in Selangor government office says rakyat dont know the format of white paper anyway; so can gelentong!

      • people of this era can always google the meaning of white paper!! dont try to gelentong anyone or else it backfires!!

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