S’GOR PAID A ‘MAGICAL’ RM100M MORE?

By : TEOH EL SEN (FMT) THE SELANGOR state government may have paid RM100 million more for a 2,263-acre land in Bestari Jaya it bought from Talam Corporation Bhd (now Trinity Corporation Bhd), MCA’s Chua Tee Yong alleged today. He questioned how the government arrived at the 'magical figure' of RM181million when a valuation done by a state-listed Kumpulan Hartanah Selangor Bhd (KHSB) on a similar piece of land came up with about RM81million. Citing from a valuation letter issued by valuer Kumpulan Jurunilai Sdn Bhd to KHSB in 2009, Chua said the valuation on a similar 4,975-acre piece of land KHSB owned in the same sub-district of Batang Berjuntai was placed at RM36,000 per acre. “The question is, why did the state-listed company, based on the annual report of KHSB in 2011, valued a land in same sub-district at RM36,000 per acre, but the Pakatan Rakyat government purchased the land from Talam at RM80,000 per acre? That’s a huge difference – that comes up to RM100 million. “If KHSB is accurate, it means that 2,263 acres would be RM81million only. How did Selangor government arrive at this magical figure? Is it a state valuation or what were the steps done to value it as such?” asked Chua, the MCA Young Professionals Bureau chairman and Labis MP. Chua today visited a portion of the Bestari Jaya site together with the media. He said the visit showed that the lands were vacant and many places underwater and, more importantly, did not have any major developments since 2010. Reporters were shown barren land with shrubbery and in several areas lakes and ponds. “We see no major developments at these lands. Perhaps, in order to generate returns, the Selangor government can contact the Agriculture and Agro-based Industry Ministry to see if the land with water is suitable for raring fish. So they can at least generate some returns,” he said. Little commercial value Previously, Chua, who is Deputy and Agro-based Industry Minister, had accused the Selangor government of possibly overpaying RM42 million for the same piece of land. He said the state government paid RM181 million for the land when it was valued at RM139 million. The valuation was done by Mitra Valuers and Property Consultants Sdn Bhd in October 2010. At the same time, Talam valued this land at RM215.1 million. Out of the vast area, 438 acres were ex-mining lakes and 575 acres of the land were forest and ecology reserve land, with little commercial value. Meanwhile, MIC leader P Kalamanathan and Kuala Kubu Bharu state assemblyman Wong Koon Mun, who was also at the site, said the state government has a lot to answer for. Wong asked why did the Selangor government need to “help” Talam by buying the land from the company when there were many others who had better and more valuable land for sale. Since July 3, Chua had embarked on a series of exposé alleging that the state government had possibly used RM1 billion in public funds to bail out Talam. First, Chua had alleged that the state lied about fully recovering its RM392 million debts when it 'did not'. He had questioned why in addition to a RM392 million supplementary budget passed in the State Legislative Assembly in 2009, an additional RM676 million worth of assets were purchased from Talam to further assist the then ailing company.