Khalid defends buy-over of Talam's debt

Selangor Menteri Besar Abdul Khalid Ibrahim today brushed off suggestions that the state government has ‘kept party leaders in the dark' over its move to buy over Talam Corporation Bhd's multi-million debt.

Speaking at a press conference in Shah Alam today, the menteri besar also defended the move, saying that it was a "state matter" to begin with.

He also said that the matter was rather "technical", requiring certain details to "understand the reasoning" behind the move.

"However, it is always the exco's belief that major policies which especially relate to public policies will be thoroughly discussed at all levels of society," he said.

Khalid said this in response to a front-paged report in The Star. The report claimed that PKR secretary-general Salehuddin Hashim sent a strongly-worded e-mail to all PKR elected representatives, questioning why the menteri besar has kept them in the dark over the move.

The state assembly had last Friday approved a supplementary budget awarding a grant of RM391 million to the state investment arm Menteri Besar Incorporated (MBI) to buy over debts owed by Talam to several state agencies.

Talam, over a decade, has accumulated debts with various state subsidiaries and agencies like Universiti Industri Selangor (Unisel), the Darul Ehsan Group (KDEB) and Selangor Education Foundation.

The menteri besar made assurances that MBI would ensure public-listed Talam fulfils its obligations by settling the debts within three months, while the recovered money will be injected into the state government's consolidated funds.

‘I am the consultant'

The menteri besar also denied that multiple transactions involved might incur additional costs including consultancy charges, as alleged in The Star report.

Flashing a smile to reporters, the menteri besar said, "The consultant is Tan Sri Khalid. I was the one who suggested (the move) and I am (overseeing) the implementation of this exercise".

When pressed by the journalists about the cost of the consultancy, Khalid joked, "No cost...(do) you want me to charge? I'd be happy to do that".

On a serious note, he said the cost would normally involve hiring lawyers, tax and banking consultants, as well as the cost of revolving credit.

‘Have some faith in us'

At the same press conference, state exco Teresa Kok said the party leaders should not expect the state government to report to them every time a decision is made.

"Every week we have so many meetings in the state government and we make so many decisions," said Kok (right) . She said that it would be "difficult" to report every single decision made to the party leaders.

"They should trust that we are not going to short-change the state government or the people and they (have to remember) that this is a coalition government of PAS, DAP and PKR," said Kok.

Kok, who is also a Kinrara assemblyperson, said that the decision was made ‘collectively' and that the state exco and assemblypersons were briefed before the decision was made. Party leaders interested in knowing the details and rationale behind the move could come to us, she said.

She then clarified the reasons behind MBI taking over the debts that Talam owed to the state subsidiaries.

"By consolidating Talam's debt owed to the state under the MBI it makes it easier to collect the debts and to take the necessary action to recoup the losses," she said.

She also stressed that MBI has more power to act as it can seize the land and assets involved if Talam does not repay its debts to the state as a last resort.