Subscribe in a reader | Subscribe by Email When news first broke out about the buying over (or bailout?) of Talam’s debt, information was hazy. Today’s paper provided info on how the money gets moved around, explained by none other than a dentist!:
Explaining the procedure, former Selangor Mentri Besar Dr Mohd Khir Toyo said the Selangor Industrial Corporation (SIC), a subsidiary of PKNS, had been directed to buy over the RM391mil owed by Talam Corp to the state agencies.
SIC would then apply for a bank loan from CIMB to buyover the debts, and channel the funds to the state government as payment.
“The state government would then offer a grant of RM391mil to Mentri Besar Incorporated which will then channel the fund to SIC, which will later pay off its debt to the bank,’’ he said, adding that the SIC would also have to bear a RM70,000 daily interest until it settled the debt.
The issue is creating another problem in the state government as some of the saying the MB did not discuss this with other PKR reps.
Worse still:
Some have also questioned the need for the state to buy over the debts, as the multiple transactions involved might incur additional costs including consultancy charges.
Rumours are rife that certain quarters were making a quick buck out of the “round-tripping” procedure involved in the buyover.
So, will the state be transparent and reveal who are the consultants, whose idea it was, is it an acceptable practise, is it legal, can the money be put to better use and so on?
Looks like Sani Bhagavan is firmly entrenched in Selangor state government’s house!
