Come clean on JCorp's RM4bil liabilities, demands DAP's Boo

In the latest 2010 Johor Corporation Financial Report, it is reported that Johor Corporation Group had total liabilities of RM 9.3 billion in 2010 and net assets of RM 5.0 billion. Johor Corporation itself has a total liabilities of 4.3 billion and net assets of only RM 870 million.

In 2010 Johor Corporation and its Group had total debts of RM 6.659 billion of which RM 2.769 billion Islamic Bonds is due for full settlement in 2012. The Johor State Government and Johor Corporation so far has not announced as to how sources of funds could be pooled to settle the RM 2.769 Islamic bond that is due next year.

In August this year Kulim Bhd acquired over 33,800 acres of estate land in Johor from Johor Corp's Subsidiary Sindora for RM700mil cash to settle part of its debts. At an average the estate land was sold for RM 21,000 per acre or 51,000 per hectare which was believed to be lower than market price.

In order to gain public confidence in GLCs management, Johor Corp should present a detailed valuation report on the deal during the upcoming Johor State Assembly sitting between Dec 8 and 19 to convince the elected members of the House that Johor Corp sold the estate land at the best market price.

Johor Corp is urged to be more transparent about its restructuring efforts, prudent in its management in order to help attract more substantial foreign investment to Iskandar Malaysia. Bold steps in liberalising Iskandar Malaysia's development should be considered including open tenders for takeovers of ailing GLCs by both local and foreign companies.

Boo Cheng Hau is the DAP Johor State Chairman and Skudai State Assemblyman