By Clara Chooi
KUALA LUMPUR, July 6 — DAP MP Tony Pua today picked apart Datuk Chua Tee Yong’s RM1 billion funds abuse allegation against the Selangor government, saying it was forcing Talam Corp to settle its RM392 million debt to the state instead of bailing the firm out.
Describing the accusation as a “stupid blunder” by Chua, Pua called on the Labis MP and other MCA leaders to withdraw their claims within 24 hours or have these further countered with more disclosures.
At a press conference here, the DAP publicity secretary revealed that Talam Corp’s RM392 million debt to three state subsidiaries had originally been incurred during Barisan Nasional’s (BN) reign in the state and was considered a “hidden debt” as it was never recorded in the three firms’ books.
He said that when Pakatan Rakyat (PR) took over after Election 2008, the hidden debts were later “uncovered” and the state moved immediately to recover the monies owed by Talam Corp, instead of bailing out the firm as claimed by Chua.
Pua explained that the state government, through the state assembly, had in November 2010 appointed Mentri Besar Incorporated (MBI) to handle the collection of the RM392 million owed by the troubled property developer.
“Meaning, the debts sit with MBI now. If they (MCA) want to say that we bought the debts, (then) we bought the debts from our own subsidiaries... we took over the debts from the state subsidiaries so that MBI will be the point man to chase Talam Corp for the debts,” he said.
MORE TO COME