The Selangor assembly has approved a supplementary budget awarding a grant of RM392 million to Menteri Besar Incorporated (MBI) for a debt recovery exercise.

The state assembly reshuffled its schedule to table the supplementary budget today, while the 2010 budget will be tabled tomorrow.

khalid ibrahim and selangor state Menteri Besar Khalid Ibrahim said the purpose of the grant is to allow MBI to ‘buy up’ debts amounting to RM392 million owed by property developer Talam Group Corporation (Talam).

The group, over the decade, has accumulated debts with various state subsidiaries and agencies like Unisel, the Darul Ehsan Group and Selangor Education Foundation.

"We are realising those debts," said Khalid, explaining that MBI now has the right to collect on the ‘purchased’ debts.

He explained that the process has taken a long and circuitous route because of the need to adhere to treasury guidelines.

"Before you take money out of the state treasury, you have to have it approved in a motion," he said, adding that several procedures have to be followed before the grant is released to MBI.

"MBI will ensure that public-listed Talam fulfills its obligations. The recovered money will be injected into the state government's consolidated funds. Talam has three months to settle its debts," said Khalid.

Khalid, who is also the Ijok assemblyperson, said that there have been other cases of companies owing money to state subsidiaries.

“The MBI is setting the procedures down, so that we may do it again," said Khalid, signalling that there may be efforts by the state to go after these errant debtors.

"There are a lot more resources that the state can unlock and recover,” he added.

'No broom for me'

Khalid took a dig at the previous BN administration, in particular his predecessor Dr Mohd Khir Toyo, when he said: "I do not intend to waste my time buying brooms to retrieve several million ringgit while overlooking a RM392 million debt.

"I have never been taught to use brooms to collect debts or manage people. It reflects poorly on the priorities of the previous menteri besar and his abilities in managing Selangor's financial health.”

Khalid stressed that the state's commitment to manage income and expenditure with transparency and accountability will be reflected in 2010 budget proposals.