SHAH ALAM: Selangor executive councillor for investment, trade and industry Teresa Kok quashed allegations that the Pakatan Rakyat (PR)--led state government had overpaid RM1.89 million for five leasehold office lots in Menara Pandan in 2010.
She said the sales and purchase agreement was signed on Jan 12, 2006, when the state was administered by the Barisan Nasional (BN).
She was responding to allegations by MCA Young Professionals Bureau chief Datuk Chua Tee Yong that the state government had overpaid when acquiring five leasehold office lots on Level 17, Block A, Menara Pandan as part of the Talam debt recovery exercise.
"Chua should conduct background checks on the deal," Kok said after a state executive council meeting.
Chua had said that the state government had acquired the lots, with a total built--up area of 8,077 sq ft, at RM2.72 million or RM337.25 per sq ft.
He said that in comparison, five units of office lots at Level 18 were put up for auction with an average reserve price ranging from RM101 per sq ft to RM103 per sq ft on July 28, 2010.
The unsold units fetched a lower price when they were auctioned in January, last year, at an average price of between RM81 per sq ft and RM83 per sq ft.
Kok said Pendidikan Industri YS Sdn Bhd and Kumpulan Darul Ehsan entered into an agreement with Maxisegar Sdn Bhd to offset the debts via an exchange agreement which was agreed upon in 2005 and 2006.