KPMG auditors find S’gor-Talam deal above board

KPMG auditors find S’gor-Talam deal above board

Aidila Razak (MKini)
2:42PM Sep 5, 2012

Independent auditors have found that the Selangor government had made “sound commercial decisions” in its debt recovery exercise from Talam Corporation Bhd.

“It was purely a debt settlement arrangement.

“(Audit firm) KPMG is of the view that Selangor made a sound commercial decision under the circumstances… at that point in time,” KPMG’s report as read out by Selangor MB Abdul Khalid Ibrahim noted.

KPMG also found that based on state records, the assets obtained from Talam “are sufficient for Menteri Besar Incorporated (MBI)… to recover Talam debts, with no debt waiver by MBI”.

Also present at the press conference was Chan Siew Mei, executive director of KPMG’s advisory unit.

Chan said the review was conducted over a period of one month and the scope was “strictly to check on transactions and supporting documents”.

“It was not to see if allegations (against the state) were true or not,” she said.

Asked if she had found instances where the value of land assets involved were lower than the debt it was to offset, she said: “The short answer is yes.”

“But the details are answered in the (state prepared and KPMG-vetted) frequently asked questions (FAQ),” she said.

However, the MB added that at no time was the state “shortchanged” as provisions were put in place to ensure that Talam would make up the difference if the land does not match the value of the debt.

‘FAQ to help MCA friends’

In the four-page FAQ, the question on overpriced assets was answered by saying that the audit found that the valuations “supported the gross consideration which was agreed upon by MBI”.

“Hence the records showed no situations of assets being overpriced,” it read.

According to the MB, the FAQ was put together to assist the media and public, “and your MCA friends” to understand the issue better.

He added that the report will be made public and tabled, alongside a white paper on the matter at the November assembly sitting.

“(KPMG’s) 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,” he said.

He said that if MCA, which has asserted that the Selangor government was involved in a RM1 billion fiasco, still needs assistance to understand, they can consult any of the state’s four appointed spokespersons.

They are Petaling Jaya Utara MP Tony Pua, Selayang MP William Leong, Kuala Selangor MP Dzulkefly Ahmad and Selangor MB’s political secretary Faekah Husin.

“If they don’t like Pua’s face, they can get a nice explanation from Dzulkefly or a female one by Faekah, or from a friendly lawyer by the name of William Leong,” he quipped.

He added that the state will proceed with legal action if MCA continues to assert that it was involved in a RM1 billion scandal.


7 thoughts on “KPMG auditors find S’gor-Talam deal above board

  1. Q1: chan: the scope was “strictly to check on transactions and supporting documents”. What supporting documents used? from Selangor Gov? and Auditor do find other sources of evidence to support their findings?

    Q2: YB EXCO Teresa Kok had Mentioned about Ulu Yam Golf And Country Club Sdn. Bhd. (UYG). Sel Gov Paid 4.2Mil to Talam to Purchase the 60% shareholding of UYG from Talam. Transaction done in 2010, but, Why in Trinity’s 2012 Anual Report, UYG still its 60% subsi?

    1. no reply for these Questions? jz a basic Question regarding the report. DrDzul u need more times to do ur findings?

  2. audit firm jz do within the Scope Requested. it is depends on how far the Sel Gov require them to do it.. IF jz vouching the documents from sel gov, this report is waste of time n $$

  3. MCA’s Chua Jr. is still trying to nail the PR-led Selangor State Govt. It is time he keeps his mouth shut. Otherwise, he should debate with Tony Pua. Is he afraid of Tony Pua?

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