KUALA LUMPUR: The MCA has questioned if the Selangor Government had “forced” Kumpulan Hartanah Selangor Bhd (KHSB) to buy RM44.7mil in assets in its debt recovery exercise involving Talam Corporation Bhd.

MCA Young Professionals Bureau chief Datuk Chua Tee Yong questioned why the RM44.7mil worth of assets, acquired from Talam, were sold to a state-related company.

He said the state government decided to acquire the RM44.7mil worth of assets from Talam which included land and office units, on March 12, 2010 as part of its RM676mil asset debt recovery exercise.

Chua said the state government proposed to dispose part of the assets to KHSB, a state-listed company, on April 26, 2010.

“According to the KHSB board minutes on May 3, 2010, and Nov 24, 2010, KHSB rejected the proposal due to valuation reasons,” he said.

Looking for answers: Chua speaking to reporters on KHSB’s purchase of the RM44.7mil in assets from the Selangor government, acquired from Talam Corporation in a debt recovery exercise.

He said the Selangor government then proposed to sell the assets again to KHSB on June 6 last year.

This second proposal included five office units in Menara Pandan and a retail lot measuring 2,745 sq m at Ukay Perdana, bringing the total assets to RM44.7mil.

“On June 29 last year, KHSB decided to acquire the land proposed based on market valuation but did not agree to acquire the five office units in Menara Pandan and shop lot in Ukay Perdana,” Chua said.

He said KHSB was informed to accept all the proposed assets based on the proposed value of RM44.7mil.

“In the 2010 state assembly sitting Hansard, the Selangor government claimed that the RM44.7mil assets can be easily disposed and open tender would be conducted. However, why are the same assets being proposed to KHSB on numerous occasions and no open tender conducted?” Chua questioned.

He said it appeared that KHSB was professional in its conduct in rejecting the offer by the Selangor government.

“We can also conclude that the Pakatan Rakyat-led Selangor government was probably trying to force KHSB to acquire the assets at RM44.7mil to avoid any losses,” he said.

Chua added that it was also disclosed in the state assembly sitting that the state government owed Talam Corporation RM30.5mil after its debt restructuring exercise.

“The Selangor government is supposed to identify land as a way to set off the RM30.5mil due to Talam. Why can't the five office units in Menara Pandan and shop lot in Ukay Perdana be used to offset the amount?” he asked.

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

The state government is said to have obtained a grant of RM392mil and acquired additional assets worth RM284mil from Talam bringing the total acquisition to RM676mil.

This RM676mil purchase of assets was said to be part of the RM1bil questionable deal.

• Alliance Research 'Neutral' on IOI Corp, ups TP to RM5.41
• Petronas Chemicals to decide on Gebeng plant by year-end
• Petronas stocks, KLK drag KLCI into the red
• KPJ Healthcare Q1 earnings down 24.7% to RM25m
• Boustead Q1 earnings down 30.9% on weaker CPO prices
• More dividends from Pacific & Orient
• CIMB, Tenaga up as KLCI again eyes 1,800 (Update)
• Bumi Armada advances to high of RM4.14 on firmer earnings
• Samchem eyes Vietnam, to contribute 30% of group revenue
• BOJ keeps policy on hold; Kiuchi proposes looser price target timeframe
• Suria Capital, SBC Corp in RM1.8b Sabah JV
• CIMB advances in early trade, Dayang in focus
• RHB Research downgrades Dayang Enterprise to Neutral
• Alliance Research ups CIMB Group’s target price to RM9.64
• JF Apex Research ups Bumi Armada FV to RM4.27

• US experts reject murder theory in scientist's death
• Polish mine launches salt photo contest
• Thunder star Durant pledges $1mil for tornado relief
• Amazon plans greenhouse-style headquarters

• Injured Murray withdraws from French Open
• Ramy wins fiery battle of words and deeds
• Low Wee Wern fails to clear opening round again in British Open
• Teenager Addeen gets massive boost Down Under
• Hosts Malaysia make a tame exit at the hands of Germany
• Denmark not prepared to take on mighty China just yet
• Japanese upset Danes and Joo-bong is all smiles
• Dane loves to unwind with her Modern Family
• Tommy not afraid to play for country despite loss
• It’s the last $traw thanks to the BWF
• BAM: There will be no more sweeping under the carpet
• Cyclists give the thumbs up to world-class velodrome
• Australian Evans says Giro dream still alive
• Savinder Kaur is new middle distance queen after 1,500m victory
• Elena walks her way to a new record

• Please wait.

• Sarawak leaders triple their salaries
• HR manager laments declining standard of English
• Loan sharks making life hell for retiree
• EPF invests more abroad, investment assets exceed half-a-trillion ringgit
• Leave troubles behind with irresistible AirAsia deals
• Samchem eyes Vietnam, to contribute 30% of group revenue
• Suria Capital, SBC Corp in RM1.8b Sabah JV
• What is the Irish loophole behind iPhone maker Apple's low tax bill(update)
• Huge education workforce
• Child bride and hubby enjoying married life