Taiyo Resort (KL) Bhd chief Erio Sakamoto may take legal action against Gerakan for questioning the company’s financial health and hence, its ability to run the Bukit Jambul Country Club (BJCC) efficiently.

NONE “I will seek legal advice with regard the statement made by Gerakan,” said Sakamoto (right in photo) when met at the lobby of the Penang state legislative assembly today.

“If they continue to insinuate that I misrepresented my company that I established 20 years ago through my hard work, I will have no choice but to press forward.”

Taiyo Resort has been awarded the contract by Island Golf Properties Bhd, a wholly owned subsidiary of Penang Development Corporation, the state investment arm.

NONE Gerakan political caucus secretary Mark Ooi (right) had questioned this, claiming that Taiyo Resort is a loss-making company that is not fit to run BJCC.

Chief Minister Lim Guan Eng was also asked to clarify the state’s decision to award the contract to the company, although it was the fifth least expensive bidder.

The matter was again raised by opposition leader Azhar Ibrahim yesterday in the legislative assembly.

Sakamoto told reporters that Ooi’s statement has caused him problems as some partners and clients are now questioning the viability of his company.

“All of a sudden, my people come to me and say they don’t want to do business with me because it looks like I am not very stable, so I am concerned about all this,” he said.

‘Currency fluctuations’

He clarified that the book value of his investments in several Malaysian companies had dropped due to currency fluctuations, as they had been funded from Japan.

“Obviously when I invested money from Japan, there were some currency exchange fluctuations over the last four years,” he explained.

“What happened is that the value of  my investment actually dropped. On top of that I have also invested in golf courses and property. In the books it has to depreciate.

NONE "Obviously when it depreciates over RM30 million of investment, it is going to cost you about RM4-5 million.”

Sakamota claimed that his companies have been doing well and he also boasts vast experience in running golf courses.

“I am here for the long haul and I have been recruiting Malaysians to run my businesses here... If I borrow from the bank, then I have a serious problem, but this is not the case here,” he added.