Chua Jr says Talam deal resulted in hefty bank loan

MCA has urged the Selangor government to explain why it chose to “burden” a profit making GLC in the acquisition of Talam Corporation Bhd assets. 

Its central committee member Chua Tee Yong said “debt-free” Permodalan Negeri Selangor Berhad (PNSB), wholly-owned by the state, is now saddled with a RM230 million debt with an interest of RM86 million because of the acquisition. 

"The (plots) land sold to PNSB consists of Bukit Beruntung 2 and Bestari Jaya, totalling to RM450 million ," said Chua, who said he was unaware of the repayment period for the loan.

Selangor had acquired RM676 million in assets from Talam as part of a complicated debt restructuring exercise in 2010. 

The move was undertaken to recover RM392 million owed by Talam to three state agencies during the previous BN administration. 

[More to follow]