SHAH ALAM: The Selangor government said yesterday it will file a defamation suit against MCA and individuals who had accused it of misappropriating funds amounting to RM1 billion involving Talam Corporation Bhd.
Menteri Besar Tan Sri Abdul Khalid Ibrahim, said after the post--state exco meeting at the state secretariat building the allegation was untrue and of a 'serious nature'.
He said the allegation, which claimed that the state government had not channelled back RM392 million to state--owned GLCs despite conducting a debt collection exercise against the formerly debt--ridden public listed company, had tarnished the state's good reputation.
He refused to elaborate, saying that it might effect the upcoming court proceedings.
No timeline was given but Abdul Khalid said the suit would be filed in the "nearest future".
Asked on the individuals to be implicated in the lawsuit, he merely replied: "Everyone who made the allegation, all those who are involved. You can read it in the affidavit."
He did not rule out the possibility of including the media which had carried the story yesterday.
Abdul Khalid also declined to shed light on how the state had carried out its debt collection exercise against Talam, saying that he would not respond to MCA's allegation.
"We will produce a white paper detailing the debt collection exercise in November. We will table it during the 2013 state budget," he said.
It was reported yesterday that MCA Young Professionals Bureau chairman Datuk Chua Tee Yong requested the PR--led government to explain the RM1 billion deal it allegedly had with Talam.
Chua claimed that part of the questionable deal included RM392 million, which the state government has yet to channel back to several GLCs, despite conducting a debt collection exercise.
He further claimed the state had also purchased RM284 million worth of assets from Talam.
He said the deal between the state government and Talam amounted to a "bailout" for the company, as it had climbed out of financial trouble.
When contacted, MCA said it would respond on this latest development during a press conference scheduled to be held today.