Tuesday, July 10, 2012

Selangor State Goverment Tilam Debt Recovery

Since the initial grandiose announcements by who else, Malaysiakini "RM392 mil Talam debt settled, says MB" and The Malaysian Insider "Selangor MB silences critics with RM50 million debt recovery", the debt recovery measure taken by the Selangor State Government from Talam Corporation Bhd, I had made some background search but left it alone seeing it nothing more than Pakatan Rakyat, PR exercise propaganda.

The Malaysian Insider especially gloats -
"Tan Sri Khalid Ibrahim proved his naysayers wrong by successfully collecting more than RM50 million in cash and assets from developer Talam Corp Bhd after acquiring its debts from state firms.

“We have so far collected more than RM50 million and we hope to collect the rest within the year,” Khalid told The Malaysian Insider last night.
Malaysiakini said it all -
"The Selangor government has been able to recover all the RM392.02 million in outstanding debt owed by Talam Corporation Sdn Bhd, Menteri Besar Khalid Ibrahim said today"
But consider the early demands by Mentri Besar Tan Sri Khalid, the Edgedaily "Selangor wants Talam to pay up RM391m in 3 months" and the very first paragraph says a lot -
The Selangor government has given TALAM CORPORATION BHD three months to settle a total of RM391 million in debts owing and due to the state for its failure to deliver on a number of projects, said Menteri Besar Tan Sri Khalid Ibrahim.
And further down the report -
"Speaking to The Edge Financial Daily here yesterday, Khalid said the state would undertake an audit of the state subsidiaries accounts and had determined that over RM500 million was owing from Talam, which disputed the figure. He added that both parties settled for RM391 million.

We have given Talam a three-month deadline,” Khalid said, adding that the company faced the prospects of foreclosure on its assets and properties if it failed to pay up by then.
Strong words indeed. There are other pertinent points in the above report for example -
In its 2009 annual report, Talam said it had been unable to meet its financial obligation to bear the development and maintenance costs of about RM134 million in the Universiti Industri Selangor (Unisel) project, whereby the state had alienated three parcels of land to the group for the development of Unisel.

Talam said it had agreed to settle the obligation by transferring 1,715.9 acres of land in Batang Berjuntai valued at RM80,000 per acre to Kumpulan Darul Ehsan Bhd and Pendidikan Industri YS Sdn Bhd, both nominees of the state government.
But what does "failure to deliver on a number of projects" and the above tell you? Corruption and misadministration by the previous state administrations? Never mind, that's maybe for another day post.

The Star, "Selangor govt: Debt recovery not a bailout" had Tan Sri Khalid denying the move a bailout.

And do note "He added that both parties settled for RM391 million."

Another thing is that mysterious Rm50 million payment, was it in cash and was it really paid?

I do wonder about it, the Edgedaily "Talam reaches RM242m debt agreement with Selangor" -
However, it is unclear whether the Rm242 million excludes the Rm50 million that Talam had agreed to pay the state government earlier this month.

Based on the Selangor government's document, the total debts owed were at Rm392 million and that Talam has agreed to pay up Rm50 million.
Never mind, it's not the subject here.

Let's get back to the subject at hand.

Tan Sri Khalid had by all accounts been bragging that he would be tough in recovering the debt which both "both parties settled for RM391 million" and it was not a bailout.

Which means Talam would have to pay up, according to Tan Sri Khalid or face foreclosure.

The constructive word is "pay up".

Yes, Talam Corp did settle with the Selangor state government but it was the Selangor state goverment who ultimately "paid up".

A grand total of Rm676 million paid up to recover Rm392 million. (Source: Talam Corp's Bursa Malaysia Announcement below)

Cock-a-doodle-doo.

See what I said about Pakatan Rakyat, PR exercise propaganda?

Wait, wait.

My post will never be complete without mentioning the Scorpion King, Brother Anwar Ibrahim.

You see, when it came out, about recovering the Talam debt in the Malaysian Insider, "Khalid defends acquisition of Talam debts" -
"The Star reported today that Salehuddin had emailed PKR MPs and state lawmakers to demand an explanation as the party had been ‘kept in the dark’ while speculating the debt buy-out would incur additional cost including consultancy charges that could profit some quarters.

There is no consultant. I am the one who initiated the move and I am not charging the state anything,” Khalid explained, adding any additional cost would be for legal, taxes and banking charges"
The settlement between Talam and the Selangor state government had been announced by Talam to Bursa Malaysia "SETTLEMENT OF DEBTS AMOUNTING TO RM241,367,317.09 (RINGGIT MALAYSIA TWO HUNDRED AND FORTY ONE MILLION THREE HUNDRED AND SIXTY SEVEN THOUSAND THREE HUNDRED AND SEVENTEEN AND SEN NINE) BY TALAM CORPORATION BERHAD (“Talam” or “the Company”) TO MENTERI BESAR SELANGOR (INCORPORATED) BY WAY OF DISPOSAL OF PROPERTIES AND CASH PAYMENT" and "SETTLEMENT OF BALANCE DEBT AMOUNTING TO RM150,619,155.91 (RINGGIT MALAYSIA ONE HUNDRED AND FIFTY MILLION SIX HUNDRED AND NINETEEN THOUSAND ONE HUNDRED AND FIFTY FIVE AND SEN NINETY ONE) BY TALAM CORPORATION BERHAD (“Talam” or “the Company”) TO MENTERI BESAR SELANGOR INCORPORATED BY WAY OF DISPOSAL OF LANDS" in March and April of 2010 respectively.

And this is what The Malaysia Insider reported in the same "Khalid defends acquisition of Talam debts" in closing -
"The Selangor government has this week also appointed PKR de facto leader Datuk Seri Anwar Ibrahim as its economic adviser. It is not known if the appointment is related to the Talam debt recovery plans."
I wonder why The Malaysian Insider had to end it's report the way it did.

Now, about that Rm50 million, it was also the Malaysian Insider which specifically mentioned "Tan Sri Khalid Ibrahim proved his naysayers wrong by successfully collecting more than RM50 million in cash" a week before, and so did the the Edgedaily, four days after the Talam announcement at Bursa, didn't they?

Never mind, just forget I ever mentioned it.

It might have gotten lost in the negotiations.

1 comment:

Snuze said...

So they bought Talam's debt in order to settle Talam's debt with them?

*iz confused*

Sorry, brain a little slow today.