Selangor gained from Talam deal
Writer: Basil Foo
Published: Fri, 27 Jul 2012
SUBANG JAYA: Selangor did not lose RM42 million but gained RM9.1 million when it acquired lands from Talam Corporation Bhd (now known as Trinity Corporation Bhd) during the debt recovery process.
According to member of Parliament for Petaling Jaya Utara, Tony Pua, the land valuation should be looked at in full instead of by piecemeal basis.
MCA’s Datuk Chua Tee Yong had earlier claimed that the Selangor government had overpaid RM42 million for one parcel of land in Bestari Jaya.
According to the deputy minister of agriculture, professional valuers had assessed the parcel as RM139.1 million instead of Selangor’s valuation of RM181.1 million.
Selangor had obtained 13 parcels of land from Talam as part of the debt restructuring exercise in 2010.
“There will always be differences in valuation. Some pieces of land, the professional valuer valued it lower (than the state valuation), like Bestari Jaya,” Pua told some 1,000 people at a public forum on Wednesday night.
“If there is one piece of land where the professional valuation values it lower, never mind…we were able to gain from the (overall) exercise,” said Tony Pua.
Elaborating on the matter, Pua said that there were many other pieces of land which were valued by professional valuers as higher than the state valuation. The total value of the settlement package was RM676.1 million while the valuers had put it as RM685.2 million, he added.
“The state gained RM9.1 million. That’s the most important thing. Overall we took back more than what they actually owed to us,” he said.
On top of that, Selangor has already received an offer to acquire the Bestari Jaya land in November 2011. The offer was for RM90,000 per acre, while the state valuation was at RM80,000 per acre.
“This (offer to acquire) to me is the best basis to judge the market price (of the land) and not the valuation done by valuers. So the state did not lose,” Pua said.
He added that the total debt settlement package between Selangor and Talam had to also incorporate an agreement for five offices in Menara Pandan, Pandan Indah.
These properties were used to pay off debts owed by Talam to state subsidiary Universiti Selangor (Unisel).
On Tuesday, Chua alleged that the state had acquired the lots at RM337.25 per sq ft while the auction price was RM103 per sq ft. Chua claimed that Selangor had lost RM1.89 million from the deal.
Pua explained that the offices were part of a settlement package in 2006 signed between the previous government and Talam.
“So when Pakatan came in, they had to abide by whatever had been signed in 2006 and incorporate that into the total settlement package,” he said.
Meanwhile, PKR strategy director Mohd Rafizi Ramli explained the reason why Menteri Besar Incorporated (MBI) came to acquire the lands from Talam.
Talam’s debts arose from several joint ventures (JV) with state subsidiaries such as Unisel, Permodalan Negeri Selangor Bhd and Kumpulan Hartanah Selangor Bhd, said Rafizi. But in the pecking order of debt settlement, JV partners would come below banks and creditors, he added.
As such, in 2009 the state assembly approved RM392 million for MBI to acquire the Talam debts from the subsidiaries for the restructuring exercise, said Rafizi.