SEPT 05, 2012
In July 2012, the State Government appointed KPMG Transaction & Restructuring Sdn Bhd (KPMG) to perform an independent review on the RM 392 million debt recovery exercise from Talam Corporation.
The state is pleased to announce that the review has been completed and a detailed report will be tabled at the next Dewan Negeri Selangor sitting scheduled for November 2012. Subsequently, the report will be made public.
We are satisfied with the review in which the independent accountants concluded: “The Selangor State Government entered into two debt settlement agreements with Talam in order to recover an amount of RM 392 million of debts owed by Talam to the Selangor State Government and its subsidiaries.
“The debt settlement was in the form of settlement assets, comprising 9 plots of land, 2 properties and 60% shares in a subsidiary of Talam and cash/debt assignment. The settlement agreements entered into with Talam were purely a debt settlement arrangement.
“From the review exercise, KPMG is of the view that the Selangor State Government made a sound commercial decision under the circumstances at that point in time in relation to the settlement arrangement.
“The settlement process is still ongoing and based on currently available information, the gross consideration is sufficient for Menteri Besar Selangor Incorporated (MBI), being the party tasked with recovering the debts on behalf of the Selangor State Government and its subsidiaries, to recover the Talam debts, with no debt waiver by MBI.”
This conclusion demonstrates that the debt recovery was legal, ethical, done in good faith and has in no way compromised the interest of the state, its subsidiaries or the people of Selangor.
The state government has prepared a list of Frequently Asked Questions (FAQs) to assist the media and the public in obtaining a clearer understanding of this issue. These FAQs were vetted by KPMG to confirm the accuracy of the facts and details presented.
We would also like to take this opportunity to announce the appointment of official spokespersons for the Selangor Government for matter concerning the Talam debt recovery.
The spokespersons are members of Parliament YB Dr Dzulkifli Ahmad from Kuala Selangor, YB Tony Pua from Petaling Jaya Utara, YB William Leong from Selayang and political secretary to the Menteri Besar, Cik Faekah Husin.
These four are authorized to discuss and debate the issue with any individuals or organizations they deem fit. We are confident that with their expert command of the facts at hand, they will able to facilitate healthy and informative discourse.
The State Government would also like to thank former auditor general Dato Mohd Salleh Mahmud who assisted the state in monitoring the entire review process.
We reaffirm our commitment to manage the economy of Selangor and its finances in adherence to the strictest professional standards, and with the interest of the rakyat always our primary priority.
TAN SRI ABDUL KHALID IBRAHIM
DATO’ MENTERI BESAR SELANGOR