HULU SELANGOR: MCA is alleging the Selangor government had overpaid a defunct company which owns hillslope land in Ulu Yam, a sum of RM1.2 million for shares.
Its Young Professionals Bureau chief, Datuk Chua Tee Yong, said the 199-acre land was purchased for RM4.2 million when it was valued only at RM3 million.
"In 2010, the Pakatan Rakyat Selangor government accepted a 60 per cent share in a company called Ulu Yam and Country Club Sdn Bhd at RM4.2 million. The only asset the company had was the 199 acres of Ulu Yam hillslope land and so the value of the shares of that company was dependent on the land.
"At 60 per cent of the shares in the company, it would be worth RM3 million and this was after price evaluation was done by one Sulaiman & Co, who had valued the land at RM5 million," he said after visiting the hillslope site with the media yesterday.
Accompanying him was Hulu Selangor Member of Parliament P. Kamalanathan.
Chua, who is also Agriculture and Agro-Based Industries Deputy Minister, said the remaining 40 per cent of the shares were held by a subsidiary of Selangor-owned Kumpulan Hartanah Selangor Bhd (KHSB).
"The valuation was initiated by KHSB in July 2011. The Ulu Yam and Country Club had not commenced operations since Jan 31, 2010, and has liabilities of RM807,000.
"This is the third piece of hillslope land accepted by the Selangor state government from the Talam deal. These hillslope land are Class 3 and Class 4 slopes where the only development allowed would be national infrastructure projects.
"In 2009, the state government froze all development plans on Class 3 and 4 land pending new guidelines on hillslope development."
Chua said the state government should have consulted KHSB before accepting the 60 per cent shares.
He also questioned if the state government conducted an independent valuation by the state valuer and if the RM807,000 in liabilities were taken into account.
Chua said with the latest expose, the Selangor government's alleged purchase of overvalued assets amounted to between RM107 million and RM165 million.
He earlier revealed "overvalued" assets in the Talam deal which included lands in Bestari Jaya (RM42 million to RM100 million); and Danau Putra (RM57 million); Menara Pandan office lots (RM1.9 million); and the Ulu Yam land (RM5.3 million).
Since July 3, Chua alleged the state government had used RM1 billion in public funds to bail out Talam Corporation Bhd, which now was called Trinity Corporation.
He had alleged the state lied about fully recovering its RM392 million debt when it did not do so and questioned why from a RM392 million supplementary budget passed in the State Legislative Assembly in 2009, an additional RM676 million worth of assets were purchased from Talam to further assist the company.