S'gor MB: State firm owns stake in Grand Saga

Selangor Menteri Besar Abdul Khalid Ibrahim revealed today that a state-owned company holds a sizable stake in toll concessionaire Grand Saga, which is embroiled in a dispute with Bandar Mahkota Cheras (BMC) residents.

“We are holding an executive council meeting this evening and we will come up with our position. I have to listen to all the facts and study the reason why the situation has to come to this stage,” he told reporters at the Parliament lobby.

Khalid did not name the state-owned company.

It is learnt that state investment arm Kumpulan Perangsang Selangor indirectly owns a portion of Grand Saga [see chart below].

He noted that the concessionaire wants to ensure that traffic will flow into the toll road, to enhance revenue.

"I have spoken to the works minister and we are in discussion to find ways to resolve the issue," Khalid said.

Saying that he stands by the BMC residents, he added that the slip road should be opened for the benefit of the community.

Calling for an EGM

Later at a press conference held in Shah Alam after the Selangor state exco meeting, Khalid said that the government, in its capacity as a shareholder in Grand Saga, would be calling for an emergency general meeting (EGM) of the company to seek explanation on the company's stern stand on the barricade matter.

He said the state also wanted an explanation on the alleged use of thugs by Grand Saga against the residents.

He added that the state government would be writing to the Malaysia Highway Authorities (LLM) to inquire if they had given permission to Grand Saga to erect the new barricade.

"If LLM confirms that they had indeed given such an approval, we will ask for the barricade to be removed," he said.

When asked why the state government did not intervene during last night's fracas , Khalid explained that Kajang Municipal Council did not produce "proficient" information on where the barricades were built.

"They (MPKJ) and the residents said the barricades were built on state-owned land but according to Grand Saga, they said they built them on LLM-owned land," he added.

He urged the residents to stay calm while the state government takes steps to solve the issue, adding that the matter also involved the federal government by virtue of the role played by LLM in the matter.

"However, we are taking this matter very seriously," he said.

He also added that an official letter has been sent to Works Minister Mohd Zin Mohamad for his decision so that the barricades can be taken down and to eventually open the access road.

A win-win situation

Khalid also stressed that the issue did not involve the residents but it was between the two companies - Grand Saga and Narajaya Sdn Bhd.

"Whatever the verdict (from the court) is, the road will be open either way," added Khalid, saying that if Narajaya won the case, Grand Saga would have to take down those barricades.

"If Narajaya lost, then they would have to pay compensation to Grand Saga," he further clarified.

The menteri besar pointed out that the state government did not question the status of the barricades - whether they are legal or illegal.

"But what made the barricades being built again is questioned," he said.

Tourism, Consumer Affairs and Environment exco Elizabeth Wong, who was also present at the press conference, urged the works minister to ‘turun padang' (take a closer look) at BMC and give orders (to settle the issue).

Also present during the conference were two other state excos, Dr Xavier Jayakumar and Ronnie Liu.

BMC developer Narajaya and Grand Saga are involved in a land ownership tussle over part of Jalan Cheras Lama.

Grand Saga had built a concrete barricade to block this toll-free access road to the highway, angering BMC residents who have torn it down three times to date.

Late yesterday, they made another attempt , resulting in a fracas with 'hired thugs' that left a bloody trail of injuries .