DEBT DEAL: Selangor owns stake in company whose only asset is hillslope land
ULU YAM: MCA's Datuk Chua Tee Yong has alleged that the Selangor government overpaid RM1.2 million for shares in a dormant company as part of the Talam debt recovery exercise in 2010.
Speaking to reporters after a site visit here, Chua said the state, through Menteri Besar Incorporated (MBI), had acquired a 60 per cent of shares in a company called Ulu Yam and Country Club Sdn Bhd at RM4.2 million.
The other 40 per cent is held by state subsidiary Kumpulan Hartanah Selangor Bhd (KHSB).
He claimed that the company, which had not started operations since its incorporation, had liabilities of RM807,000 as of Jan 31, 2010.
"The company's only asset is 199 acres of Ulu Yam hillslope land. Thus, the company's share value is dependent on that land."
Chua added that this was the third hillslope land accepted by the state through the Talam deal, but it was too dangerous for development as the slope is above Class 3 and Class 4.
"KHSB rejected the first proposal by the state government for it to acquire 60 per cent of shares at RM4.2 million on May 3, 2010."
Chua said the state made a second proposal to KHSB, following which the state subsidiary valued the hillslope land in July 2010. Valuation firm Sulaiman & Co found that the 199 acres were worth RM5 million.
"Thus, 60 per cent of shares in the company, whose asset is only hillslope land, would only be worth RM3 million. Compare this with Selangor's acquisition of 60 per cent shares at RM4.2 million. There is a depreciation of RM1.2 million."
He said the state government should have consulted KHSB before acquiring 60 per cent of shares as KHSB owned the other 40 percent.
"Did the state government conduct an independent valuation by the state valuer?
"Was there an independent financial or legal due diligence being carried out and were the company's liabilities of RM807,000 taken into account?"
Chua, who is also deputy agriculture and agro-based industry minister, said this latest figure would bring the total to between RM107 million and RM165 million of overvalued assets since his first expose on the Talam deal.
Previously, he had revealed overvaluation of land in Bestari Jaya that lacked commercial value as 191ha of it was under water and another 231ha were forest and ecology reserves (RM42 million to RM100 million), and overvaluation of land that was once a mining pond in Danau Putra (RM57 million).
Others allegations included overvaluation of vacant office units and retail lots in Menara Pandan (RM1.9 million) and overvaluation of hillslope land Class 3 and 4 in Ulu Yam (RM5.3 million).