Permodalan Negeri Selangor Berhad's (PNSB) is capable of undertaking RM230 million in loans for land acquired from Menteri Besar Incorporated (MPI) because its financial position had improved after 2008, said DAP national publicity chief Tony Pua.

bank negara fsrc building 010712 tony pua At a press conference today, Pua said PNSB’s finances had improved “leaps and bounds” after Pakatan Rakyat took helm of Selangor after making losses for four consecutive years since 2005.

"Aside from the loss of RM15.6 million in 2008, the state development firm, after the transition from BN to Pakatan, PNSB had recorded a profit of RM8 million in 2009, RM23.4 million in 2010 and RM28.4 million in 2011,” said Pua.

Pua was responding to MCA's central committee member Chua Tee Yong’s claim that Selangor had “ burdened ” the profitable PNSB.

MBI sold land in Bukit Beruntung 2 and Bestari Jaya, acquired as part of a debt recovery exercise from Talam Corporation Bhd, to PNSB for RM450 million.

Pua claimed that Chua’s accusations against PNSB reflected badly on the latter’s credibility.

"How is it that a chartered accountant with qualifications from RMIT University can accuse PNSB of being forced to be indebted, when its financial turnaround from the days of BN has been nothing short of spectacular," said Pua.

What improprieties?

Last week, Pua had charged at Chua demanding to know the "impropriety" in PNSB's bank borrowings to acquire land assets.

"In case Chua isn't aware, PNSB is a property development company, it has to acquire land to develop and construct, in order to sell and make a return for the company.

"It is no different from any property development company, privately held or publicly listed or government owned," said Pua, demanding to know the purported "scandal" in the matter.

Citing PNSB's balance sheets obtained from the Companies Commission of Malaysia (CCM), Pua showed that the state subsidiary had total assets of RM761 million and RM823.8 million in 2010 and 2011 respectively, compared to those of 2008 and 2009, which stood at RM111 million and RM115 million.

He pointed out that PNSB's cash reserves were at RM83.9 million and RM92.9 million in 2010 and 2011, rebutting Chua's claim that PNSB's assets had depleted in the process of taking out the loan.

"In addition, and probably more tellingly, the net tangible assets of PNSB improved by 17.7 percent from RM11.55 per share in 2009 to RM13.59 per share in 2011," said Pua.

NONE He added that "knowing" the state's guarantee to ensure transparency, the state "probably" had already outlined the construction plans of the land which Chua ( right ) claimed had no major development that he was aware of.

Pointing out that the information obtained is publicly available, Pua, again challenged Chua to a public debate.

"Despite the initial rejection by Chua, I hope that he will reconsider the offer to debate the Talam debt ‘scandal' which he has raised, perhaps at least to teach me proper accounting," said Pua.

Earlier this month, Chua claimed that PKR-run Selangor had used RM1 billion to bail out Talam Corporation Berhad, through a RM392 million supplementary budget passed in the state's legislative assembly in 2009.

Chua alleged that the state government had overpaid RM42 million to Talam for land as part of the debt restructuring deal with the company, now known as Trinity Corporation Berhad.

However, these claims were debunked by Pua.

Chua also criticised Pua's role in matter, repeatedly asserting that the latter was not part of the state administration.

"A Labis MP from Johor can make rubbish accusations, what's wrong with a Selangor MP to reply to the allegations against the Selangor state? I have the right to reply as long I have the facts right," said Pua, when asked on the matter.

Following the series of exposés, Menteri Besar Khalid Ibrahim announced that it would appoint five independent audit firms of repute to go through Selangor's handling of Talam's debts.

A White Paper will also be tabled at the state legislative assembly.

The state is also mulling a legal action against Chua.

VIDEO l 7.25 mins

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