DAP has challenged MCA to prove its earlier claim that the Selangor government was involved in some sort of RM1 billion scandal or admit it made a mistake.

In a press release today, DAP publicity chief Tony Pua said it has been a week since the allegation was raised, but no new information about the RM1 billion scandal was forthcoming.

azlan Pua said Pakatan Rakyat has thus far proven that MCA's allegations of Selangor bailing out Talam Corporation, resulting in a “RM1 billion deal”, were untrue.

“We have showed clearly that there was not only no bailout, Talam was forced to repay its debts to the state government amounting to RM392 million which were all accrued during the BN regime,” he said.

Pua added that Pakatan had also proven that MCA central committee member Chua Tee Yong, who first made the RM1 billion claim, had problems understanding a balance sheet.

On July 5, Chua held a follow-up press conference where he said he will talk about the RM1 billion scandal after securing more information .

On Chua’s claim that the Selangor government “overpaid” Talam RM57.3 million for a 53.74ha land in Danau Putra, Pua said the former had selectively quoted a report to justify his allegation.

Submerged land

Chua had claimed that the land was over-valued by Selangor when it took over the land from Talam that was mostly submerged, and valuers estimate the cost of filling to be about RM51 million.

Referring to the same valuation report by Chartwell ITAC International which Chua used, Pua accused the former of failing to note that the firm had valued the same piece of land at RM93.5 million, even higher than the state’s valuation.

The report also said Chartwell had made a further adjustment to their valuation by excluding the estimated cost of earth filling of the area under water.

In a related development, Selangor Menteri Besar Khalid Ibrahim said the so-called RM1 billion scandal had helped promote the fact that Selangor has managed to collect debts which the previous administration could not.

    

“The prime minister should question the previous menteri besar on this. Umno was not keen on collecting the debt,” he said in a press release.

Soon after taking over the Selangor administration, Khalid had ordered a debt restructuring exercise to recover RM392 million owed by Talam to three state agencies.

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