FEB 24, 2009
DISCREPENCIES IN PNSB’S PURCHASE OF SAUDI APARTMENT
SHAH ALAM: In order to promote efficiency in the administration and management of the state government’s subsidiaries, the Menteri Besar Incorporated (MBI) has appointed advisors to assist in enhancing the subsidiaries’ performance. One of the areas covered by the advisors is the evaluation of expenses which an important exercise given the current economic downturn.
One of MBI’s concerns is the delay in finalizing the 2007 financial accounts of Permodalan Negeri Selangor Berhad (PNSB). It has come to the attention of the current board of directors that there were discrepancies in the purchase of properties of “Al Marwa Tower Makkah, Saudi Arabia” – an issue which was raised by External Auditors.
According to the PNSB Directors Circular Resolution dated 14 September 2007, PNSB had approved for the purchase of five units of properties amounting to RM8,352,427.66. However, records showed that PNSB had between September 17, 2007 and September 19, 2007 transferred RM25,603,545 to Saudi Arabia for 12 units of properties. Between September 25, 2007 and October 3, 2007 PNSB received cheques amounting to RM17,251,092 from an individual – said to be for the purchase of seven units from PNSB at the price PNSB had paid for. No official receipt was issued to acknowledge it.
Subsequently, in 2008 it has come to the attention of Board of Directors that PNSB prepared and signed four cheques amounting to RM8,000,205.20 to an individual. The individual is the same person who had earlier handed over cheques to PNSB amounting to RM17,251,032 stated above.
However, three of the four cheques prepared and signed by authorized signatories were then cancelled. The fourth cheque amounting RM2 million was released and banked in into the account of the individual. PNSB then arranged with the bank to stop payment. Between the date of the acquisition of the additional seven units making a total of 12 units and the disposal of the seven units leaving five units in the hand of PNSB, there was no Board of Directors Meeting or Board of Directors Circular Resolution for the transaction. Up to the point of issuance and cancellation of cheques to the individual, no Board minutes or circular resolution were made.
It should be noted that the acquisition was made in the name of the then PNSB Chairman Dato Sri Dr. Khir Toyo as Saudi requirement that properties within the Mecca must be in the name of Muslim individuals. At the Board of Directors meeting on December 2007 Dr Khir disclosed the facts the properties are in his name but assured that he will not be making any claim over the property. However, there was no mention of the exact number of units held by him.
The above actions are certainly puzzling. Why did PNSB paid more than RM25 million when the board only approved about RM8 million for five units? Why did it then accept about RM17 million – said to be for the sale of the seven units? Why did it then attempt to re-purchase the units it had sold off? Menteri Besar Tan Sri Abdul Khalid Ibrahim, who is the chairman of MBI, intends to find the answers to the above questions and will not hesitate to take strong action should there be any criminality involved.
OFFICE OF DATO’ MENTERI BESAR SELANGOR