SHAH ALAM (July 4): The Selangor state government will be taking legal action against MCA and individuals who have made allegations of its involvement in a so-called RM1 billion scandal.
Selangor Menteri Besar Tan Sri Khalid Ibrahim said this was decided by the state executive council at its meeting here on Wednesday morning.
“We have decided to sue MCA and those who have made accusations against us regarding allegations of this RM1 billion scandal,” he told a press conference after the meeting. “Not only are these allegations false and serious, they have also smeared the Selangor state government’s good name,” he added.
The state government’s move comes a day after MCA Young Professionals Bureau chief Datuk Chua Tee Yong accused it of misappropriating public funds linked to a debt recovery exercise involving Talam Corporation Bhd (now known as Trinity Corporation Bhd) in 2009.
Chua had challenged the Pakatan Rakyat state government to explain the deals amounting to RM1 billion, which he said comprised a “bailout” of Talam, purchase of assets from Talam and unpaid debt to state companies.
Khalid, however, declined to name specific individuals or refute Chua’s allegations, saying this would go against their solicitors’ advice. “We will be filing a notice very soon,” Khalid said.
“So I won’t issue any explanation now because I don’t want to interrupt the procedure.” He reiterated that a white paper on the restructuring of Talam’s debt would be released as part of the Selangor 2013 Budget in November.
Chua had on Tuesday challenged the Selangor government to release the white paper as promised in 2010. He further demanded that the state government disclose all acquired assets and their valuation or basis in the deals.