The Selangor government’s decision to approve an additional RM391 million budget allocation to Mentri Besar Inc (MBI) to take over the debts owed by Talam Corp Bhd to three state agencies has stirred controversy.
Basically, under the move, MBI will use the money (via Selangor Industrial Corporation as a channel?) to settle the amount that Talam owes subsidiaries of Selangor Development Corporation (PKNS), Kumpulan Darul Ehsan Bhd (KDEB), Permodalan Negeri Selangor Bhd (PNSB) and Yayasan Pendidikan Selangor. The state government (via SIC?) is then supposed to recover the amount due from Talam.
While critics are viewing it as a bailout or window-dressing, Mentri Besar Khalid Ibrahim says the rationale is to ensure that Talam gives a higher priority to its debt (to the state), incurred over the last decade, ahead of its other creditors. On 10 Nov, Khalid gave Talam three months to settle the debt, incurred in connection with several property development projects. That remains to be seen.
In any case, I hope the Selangor state government will also take action against those responsible in the three state agencies who allowed such a large debt to go uncollected for so long. What sort of security did they obtain from Talam?
Whatever the reason for the takeover of the debts, let’s take a closer look at Talam.
The Edge reported the following on 10 Aug 2009:
Talam, a township developer, has been classified as an affected company under PN17 since Sept 1, 2006, after its auditors were unable to provide an opinion on its results for its FY2006 ended Jan 31. Talam also defaulted on several of its term loans and bond obligations.
As part of Talam’s regularisation plan, the company issued a number of securities to various creditors, including the now-defunct discount house Abrar Discounts Bhd. Abrar received preference shares, loan stocks and Islamic debt securities worth RM423.35 million as settlement from Talam as part of the latter’s regularisation plan.
Profit/(Loss) before tax(at group level):
- 2009 – RM60.6 million
- 2008 – RM5.8 million
- 2007 – (RM6.9 million)
- 2006 – (RM772.6 million)
- 2005 – RM130.8 million
Talam directors (click here)
Directors’ remuneration:
- 2009 – RM1.9 million (9 directors, three of whom received more than RM300,000 each)
- 2008 – RM1.8 million
Debt (non-current liabilities) to equity ratio: 0.5 (previous year – 0.6)
Liquidity ratio (Current ratio):
- Current assets: RM1.5 million
- Current liabilities: RM2.4 million
- Current assets:Current liabilities ratio = 0.6:1 (previous year – same)
This means that its current (liquid) assets are much less than its liabilities due within a year.
“Other payables” amount to RM404.3 million.
Extract from Talam Annual Report 2009:
Other payables and accrued expenses
The obligation arising from the acquisition of land is in respect of obligations arising from the Universiti Industri Selangor (“UNISEL”) project, whereby the Selangor State Government had alienated three parcels of land to the Group in consideration for the development of UNISEL.
In 2001, Maxisegar Sdn. Bhd. (“MSSB”), a wholly-owned subsidiary, entered into an agreement with the State Government of Selangor for the financing and construction of the main campus of UNISEL on 572.16 acres of land at Berjuntai Bestari, Selangor Darul Ehsan for a total value of RM750 million. In return, the State Government of Selangor had alienated three parcels of leasehold land to MSSB as follows:
Acres RM’000
Batang Berjuntai 3,000 345,000
Taman Puncak Jalil 801 337,500
Saujana Damansara 110 67,500
Total 3,911 750,000MSSB was unable to meet its financial obligation to bear the development and maintenance costs due of approximately RM134.0 million (“obligation due”) of UNISEL and as such, in the previous financial year, the long term portion of MSSB’s obligation under the said agreement has been reclassified to current liabilities and it has entered into an agreement with Kumpulan Darul Ehsan Berhad (“KDEB”) and Pendidikan Industri YS Sdn. Bhd. (“PIYS”) (both of which acted as nominees of State Government of Selangor) whereby MSSB agreed to settle the obligation due by transferring 1,715.9 acres of Batang Berjuntai land which the parties have agreed shall be valued for the purpose of settlement at RM80,000 per acre to KDEB and/or PIYS. The settlement agreement is pending fulfillment of certain conditions
precedent.
Substantial shareholders (based on Annual Report 2009):
(Based on Register of Substantial Shareholders as at 10 June 2009)
No. of Ordinary Shares of RM0.20 each
Direct Deemed
Name of substantial shareholders Interest %*4 Interest %*4
1. Tan Sri Dato’ (Dr) Ir Chan Ah Chye 130,769,592 6.78 854,561,543 *1 44.32
@ Chan Chong Yoon (“TSDCAC”)
2. Puan Sri Datin Thong Nyok Choo 7,493,945 0.39 977,837,190 *2 50.71
(“PSDTNC”)
3. Kumpulan Europlus Berhad 791,465,067 41.05 – –
(“KEURO”)
4. IJM Corporation Berhad (“IJM”) – – 791,465,067 *3 41.05
NOTES:
*1 Deemed interested through his spouse, PSDTNC, his daughter, Chan Siu Wei and by virtue of his interest in
Pengurusan Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO
pursuant to Section 6A of the Companies Act, 1965 (“Act”).
*2 Deemed interest through her spouse, TSDCAC, her daughter, Chan Siu Wei and by virtue of her interest in Pengurusan
Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO pursuant to Section
6A of the Act.
*3 Deemed interested by virtue of IJM holding 25% in KEURO.
*4 % shareholding based on voting share capital as at 10 June 2009 of 1,928,102,532.
On 17 July 2009, the Edge reported that Kumpulan Euro had disposed of a 9.10 per cent stake in Talam, a move which was described then as “puzzling”.
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Just don’t be TALAM DUA MUKA!
I would like to know where on the website to find the list of names and amounts due to receive. Thanks
can you let us now how many project have they completed and how many abandoned?
Selangor gives Talam money to clear debts, what is really in it for Selangor? That I am curious to know. Can anyone enlighten me?
Abrar group is (allegedly) owned by one of Anwar’s crony..isn’t it?
I honestly see no problems here. As at the time this decision was made Talam owed all that money to 3 Selangor State owned companies. Now the State has taken over the debts and has pumped into those companies probably much needed funds. For those thinking that taxpayers money is being used. So what? If Talam fails today and the State owned companies were to write off these debts the result is still the same. Obviously the State owned companies are in need of funds. This is an easy way to raise those funds, clean up their balance sheets and move on. Presumably those companies can move on a little faster than the State can. I also cannot imagine the State to have paid $ for $ for the debts. If that were to be the case, upon recovering whatever debt from Talam the State may even end up making a profit from this exercise. Sure Talam is in deep shit. But from what I hear Talam is making an effort to get its act together. Furthermore, with the debts now consolidated into the State, maybe as creditor or lender, the State may have some leverage over Talam.
The statements by the two professors reported in The Star today only goes to show their complete lack of understanding of the business world. It was rather embarrassing reading it. It goes under the heading Experts: Selangor’s move not economically viable (http://thestar.com.my/news/story.asp?sec=nation&file=%2F2009%2F11%2F21%2Fnation%2F5159536)
lets give full support to t.s khalid. he know better.
go khalid go
There are actually three companies; Talam, Europlus and I can’t remember the third (Larut??).
It’s not just abandoned projects, but even completed ones are abysmal. A good example is Bukit Beruntung (Europlus). What started out as a great promise ended up being horrible.
The Bukit Beruntung Golf Club was “contraed” back to the Selangor Government – whatever that means.
This is an example of cronyism at its worst.
sweetheart deals were given … and the present govt has to bear the burden!
where are you Toyoman?
Come on Guys, PR khalid is clearing the … left by the man caught for money laundering in Brisbane then the various MBs… all UMNO….
They … plundered and screwed the rakyat, we should support Khalid and make sure UMNO… dun come back into power.
Talam – strange name. Bad Feng shui maa.
I believe the State government as the controller of land has the muscle to force to pay up the debts in the shortest time possible. TS Khalid with his wide corporate experience surely knows his stuff.
Is there a link between this bail out and the appointment of Anwar as the “economic advisor” to the Selangor govt ??
If this is not cronyism then what is ?
Just like you said “Is there a link ????“ which means it is not affirmative so what croynism are you talking about.
Don`t keep trumpeting until you are certain…….
TALAM DUA MUKA has no corporate knowledge in raising Talam issue. Just paste information here and there to attract readers. At the end, readers find no substances.
I fully agreed with malaysiain
When PKR took over Selangor, they were more or less needed to become a washing machine. They have to clean the … dirt that had been swept and kept under the carpet by BeEnd or rather UMNO over the years, (52 years?) and to enriched themselves.
Therefore, let’s us give the PKR and Tan Sri Khalid and his team the time needed to open up more cans of worms and expose them to the public.
The BeEnd has taken the Malaysian for a ride for too long and we Malaysians are not stupid as the BeEnd politicians think.
If the PKR screws us up, then at the next election we show them the door.
But in the mean time, we must give the Selangor government the support and trust as I am sure they do not want to disappoint the voters who had put them there.
So far I think PKR is keeping on track but every now and then Toyo (the sore loser) and his gang are trying derail the present Selangor government.
If Toyo and his gang had not failed the people in the past, the PKR would not have the chance to take even a single seat.
Therefore, Toyo and his gang should not do any further damage to BeEnd in the eyes of the people if they want to make a come at the next election.
Twitter: Penangite
By rescuing Talam, TS Khalid managed to recover debts owed to the 3 GLCs. No loss in this case as MBI paid to the 3 GLCs (right pocket goes to the left pocket). Thus by executing this move, the Selangor Govt has a good chance of recouping part of the RM391M or possibly all of it. IF this move was not executed, the RM391m owed by Talam to the 3 GLCs is as good as bad debts.
Think is a wise move by Khalid.He know what he is doing.Lets support his move.If I am not wrong (someone) still owns the Sabah Turf Club’s gaming outfit,the STC lottery in Sabah under Everise Venture Sdn.Bhd.This company of his I believe is now making money though it was a PN4 company some years back.Khalid would know whom to squeeze to recover the Selangor government interest.Be patience,I sure this is a wise move.
Talam looks like a …. compny than a listed co.
Sorry for Tan Sri Khalid, you carry the burden of previous state government mismanagement
Tan Sri Khalid like the Prime Minister of Japan or President of USA, he is rich before he became the Menteri Besar. I trust him better.
daniel
It would be very interesting to ask how come Khalid become rich…and BTW understand that Khalid is also owe a huge sum of money to banks and these banks are pursuing legal avenue to recover it. It is possible that Khalid might be made a bankrupt and leave his post as MB.
k, You should be asking Khir Toyo that question, a dentist that could acquire a 24 million mansion. You should also be asking how Taib got 6 millions cash in his suitcase during check in to Australia. Are you biase or just plain stupid…… when Khalid would possibly be made bankrupt as you said so….
TS Khalid was a big shareholder in Guthrie and vast experience in corporate world in his entire life. A corporate figure before joining politics. Between Asian and Western, what a vast contrast. Most politicians become rich after in power. In modern countries, they are rich to begin with.
Dear Yang
That’s precisely the reason why KT was kicked out of Selangor…while investigating KT and his allegedly ill-gotten assets is a definite must, I am more interested in making sure that we don’t replace one tainted MB with another even more tainted leader.
Selangor, being the richest state always had politicians attracted to it like bees to honey via questionable deals and unchecked developments. However, the new Pakatan regime, instead of putting a stop to these dirty deals, (appears to have) wholeheartedly embraced them.
Talk to any Selangorians and they will tell you that the politicians who before GE drove local and cheap Japanese cars and wore simple attire are now suddenly became hard to reach, being driven around in expensive luxury cars/ SUVs/MPVs and clothed in designer brands.
So much for “merakyatkan ekonomi” but rather “memperbodohkan rakyat dan ekonomi”.
K,
If I were the Prime Minister of Malaysia, I will pay elected representatives high pay. They deserve with their hard work. Singaporean minister is salaried at least $30k a month.
We should be happy to see elected representatives improve their lifestyle. Normal people work in private sector already earning much more than them.
So, what is a RM150k-RM120k car? Look around us, so many people driving them.
I think we should put away jealousy.
Can someone help to check some intriging issues surrounding the buyover or bailout? Its reported SIC to get CIMB loan over RM 391 million. What are the actual collateral? Who are the main guarantors?
Its rumoured that (a certain M) is somehow the person to arrange this facilities. Also, the likes of (another M) & AH are somehow link to the Selangor Corps.
Given the political scenario, why would CIMB wanna risk this loan or venture? I believe Anwar stepped in for a reason to make sure Khalid dont fumble to this hidden hands.
Bailout or not, I am pretty sure some top echelons wanna settle this scandal amicably. Perhaps some bargaining has been discussed over between old timer whom walks thru the corridor of UMno and PKR.
I guess this has jolted lots of members from both parties especially the youth wing. Well, lets hope this can help Selangor recoup the debt without having the pretext of being the downfall of PR.
Anil
I was told that the building that being constructed in the Beach Street (right opposite the entrance to the Market Street in Little India)has been converted from a public carpark to a commercial property.
I remember MPPP deciding to remove an open uncovered carpark and to build a multi-story carpark for some dubious reasons a few years ago.
The construction was stopped for a while when the current Development Above People took over. However, several weeks ago the project was re-launched and it was informed by my sources within MPPP that the building now has been given a go ahead but it is to be built as a commercial building instead a public car park.
The contruction work is a mess with poor safety practices and non existent traffic control. However, the signboard that advertised the car park has mysteriously gone missing. In fact there is none.
Can someone verify the accuracy of this accusation ? I am worried that this is yet another case of the selling of the state to the Big Business.
I believe the state government and MPPP will do their best. Be respectful to our leaders and government servants. This is time to work for betterment of Penang.
Even a commercial building were to be build, it is the state investment and the profit will go back to the state. In stead of the state government increase the burden by increase quit rent and assessment, the development and investment is good.
Be cool. Give the elected leaders a peace of mind to serve the people of Penang.
A lot of people got confused about this debt-buying issue. Mainstream media went to town with the news, hoping to exploit this confusion.
Debt-buying doesn’t necessarily mean Selangor government had to pay Talam to buy the debts. It could mean that the debts owed to the state-run companies are now transferred to the state government (via its nominee, the MB, Incorporated).
Why do it?
1) It cuts the bureaucracy. Instead of multiple state companies having to beg Talam to pay, now it’s only one entity & one group of people under MB, Inc. that deals with Talam. Focus and attention is there. After all, not a single sen was collected for years of doing it the old way (Poyo, thanks for the inertia!). Why not try another? Kudos to Tan Sri Khalid for making the effort to collect what is owed to the state.
2) Bargaining power and leverage is greater when MB, Inc. step into the picture. They can initiate strong steps to liquidate some of Talam’s assets, for example. Look at it as Big Brother stepping in to demand payments from the debtor what is owed to his little hapless brothers & sisters.
Those were just two quick ones. I can list several others. But those would suffice for now. One thing, though – you should know better than trusting what the MSM want you to believe.
Yes. It is good that a Bombing check and balance zooming PR state government. They get the pay and working so hard for the Rakyat.
Any small mistake will get a firing from the Rakyat. However, their integrity is well respected although is never perfect in all their administrations.
Malaysia is multiple races with different back grounds. State administrator either bury them or delay the decision. But PR is bold and daring to come forward to resolve them.
Anyway, solutions could hurt few but I hope it brings all problems to a solution at least.
As an investor for Talam Bhd. Please advise whether Talam can be out of PN 17 soon ?
Is the ‘Restructuring programme’( out of Pn 17 ) included the debts owed to GLC of Selangor ????
Alex :
Currently it is at around 10 cents. Wait for 7-8 cents it should be a good buy. If the government is not confident that it would come out of PN 17, how are they going to chase back the money. For the 1st half 2009, it made a profit of 2.46 millions and has a net tangible asset of 35 cents. Can take the risk but must be medium to short term…..
Talam now had meet all the requirement to get SC to uplift it from PN17. However Talam is waiting the debt off setting plan to completed first. Pls read below for better understanding.
http://thestar.com.my/metro/story.asp?file=/2009/11/25/central/5174460&sec=central
Thank you Mr Yang & MK for the advices of Talam ’s Uplifting of PN 17.
As ‘ Government ‘ mentioned , are you refer Selangor- Pakatan or Federal Government – Barisan.
You know Barisan always wants to find trobles with Pakatan. Hopefully I am wrong ?????
Refer to state goverment. This is a win win situation. State goverment will able to recover the debt. Talam can dispose part of its land to further reduce the borrowing and enhance Talam’s balance sheet. In my opinion, no one can find valid reason to object this plan.
What’s the pingback, kickback or whatever back? Looking at the board members of Talam, I can safely say that Selangor has to do it like it or not… Remember long time ago when The late HRH Sultan lashed at Mike Tyson that he has to move to Pulau Ketam” coz lands were all given out by Mike Tyson? Who are amongst the biggest receiver? Talam? Yes or no?
Look also who is amongst the director and shareholder of KDEB? It’s Chan Ah Chye as the biggest single minority shareholder. Aiiyahh, afterall this is just another paper shuffelings by those experts!.
In my opinion Talam should be booted long time,
it saddened me that (the high-level alleged culprits) ‘ in Talam management are still being protected…
… It is high time Malaysian wake-up from the slumber and expose these business … from exploiting the poor Malaysian of their hard earned monies.
Any comments buddies?.
Strange to believe that amid Talam’s annual
financial loses and yet the Directors renumeration
run into millions .
2008 – 1.8 million ringgit
2009 – 1.9 million ringgit
Absurd to believe that Selangor State Government
is pumping Rm 391 million of hard earned taxpayers monies to take over the debts owed by Talam Corporation.It would be better if they buy Talam ,
at a fraction cost since the company is classified a PN 17 entity.
Talam have screwed and messed not only in Selangor
but also other states like Johor .
Metro Larkin Hotel/Office/Condominium in Johore
state reflects the tardiness and abandoned project
created by Talam and Associates.
BN/PKR Politicians must wake up and clean the mess
IF they are sincere to win Rakyat confidence in
the next coming general election.
Anyway ,Talam should be dissolved many years
ago rather letting this Dracula entity Co sucking
innocent Rakyat hard-earned monies.
Shame to Talam and those who gives protection to
Talam.