RM500m loan for DEIG?

Umno representatives are reported to be crying foul.

PETALING JAYA: The heavily criticised Selangor-owned Darul Ehsan Investment Group (DEIG) is rumoured to have received a bank loan amounting to RM500 million.

A source told FMT that the loan was acquired from one of the biggest local banks.

The loan is said to have been acquired by a DEIG subsidiary, DEIG Land Sdn Bhd, which was established last May.

According to the source, the loan was taken to allow DEIG to take over another state-owned subsidiary, one that owns a multitude of properties.

He said several Umno lawmakers had acquired information on the matter and would soon be revealing it to the media. Apparently, they are questioning how a company that is not yet operational has been able to secure the loan despite the controversy surrounding it.

Selangor Menteri Besar Mohamed Azmin Ali is on record as saying that DIEG will begin operations in the first quarter of next year.

Umno representatives earlier raised concerns that the company, an entity that comes under Menteri Besar Selangor Incorporated (MBI), would invite negative repercussions because it would not be required to report directly to the state government and its operation would not be subjected to auditing.

DEIG has also come under criticism from Yeo Bee Yin of DAP, the Damansara Utama representative in the state assembly. She demanded concrete explanations from the Menteri Besar, saying this would prevent confusion among members of the state assembly.