Selangor State Assembly approves RM392m to buy Talam's debts

2009/11/09

SHAH ALAM: The Selangor State Assembly today agreed to approve an additional budget of RM392 million to Menteri Besar Incorporated (MBI) to buy the debts of Kumpulan Talam with the state government, Menteri Besar Tan Sri Abdul Khalid Ibrahim said today.

He said the grant will enable MBI to buy Talam's debts worth RM392 million with the state government and consequently allow it to take over the debt collection of Talam from the three subsidiaries of the state, namely Kumpulan Darul Ehsan Bhd, Permodalan Negeri Selangor Bhd and Yayasan Pendidikan Selangor.

He said this at a press conference here after the state assembly adjourned today.

The housing company owes the three state owned subsidiary companies RM392 million in connection with several joint property development projects carried out the last 10 years.

"Starting now, MBI will be able to carry out its plan to ensure that Talam pays their debts and the entire collectons are expected to beef up the state government's funds," he said.

Prior to this, the total amount owed was never acknowledged in full or recorded with details in the accounts of the state companies.

Abdul Khalid said: "The previous state government has never made any efforts to collect the debts and if immediate action is not taken, the debts could be written off."

With the approval of the additional budget, it will make it easier for MBI to collect the debts from Talam within three months.

He said the state government will help Talam with its development projects to enable it to pay its debts to the state government but if it fails to do so, it can no longer be able to carrry out development in the state.

Abdul Khalid said there were three or four more companies on which the state government will be taking action in order to collect their payments.

He said the 2010 Budget will be tabled tomorrow.- Bernama