Saudi apartments deal riddled with discrepancies

The apartments purchased in Saudi Arabia by the Selangor government in 2007 are under the name of former menteri besar Dr Mohd Khir Toyo and the transaction is riddled with discrepancies, according to the current administration.

However, it could not be ascertained how many of the units purchased by state investment arm Permodalan Negeri Selangor Bhd (PNSB) are held by Mohd Khir.

Vowing to get to the bottom of this, Selangor Menteri Besar Abdul Khalid Ibrahim also warned that he would not hesitate to take stern action if criminality was involved in the purchase.

The acquisition was made in the name of then PNSB chairperson Mohd Khir as it is a requirement that properties within Mecca must be in the name of Muslim individuals.

"At the December 2007 board of directors meeting, Mohd Khir disclosed that the properties are in his name but assured that he will not be making any claims over the property.

"However there was no mention of the exact number of units held by him," said the menteri besar in a statement.

Delay in finalising financial accounts

Abdul Khalid said the state's financial vehicle Menteri Besar Incorporated (MBI), which he spearheads, has appointed advisers to enhance the performance of the subsidiaries and evaluate their expenditure.

"One of MBI's concerns is the delay in finalising the 2007 financial accounts of PNSB. It has come to the attention of the current board of directors that there were discrepancies in the purchase of properties of the 'Al Marwa Tower Makkah' - an issue raised by external auditors," he added.

According to a PNSB directors' resolution in a circular dated Sept 14, 2007, Abdul Khalid said PNSB approved the purchase of five units amounting to more than RM8 million.

"However, records showed that PNSB had between Sept 17 and Sept 19, 2007, transferred more than RM25 million to Saudi Arabia for 12 units of properties.

"Between Sept 25 and Oct 3, PNSB received cheques amounting to RM17,251,092 from an individual - said to be for the purchase of seven units at the price PNSB had paid. No official receipt was issued to acknowledge it," he added.

'Certainly puzzling actions'

Subsequently, Abdul Khalid said, in 2008, it came to the attention of PNSB's board of directors that the investment arm had 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 more than RM17 million," he pointed out.

However, the menteri besar noted that three of the four cheques prepared and signed by authorised signatories were then cancelled.

Abdul Khalid said the fourth cheque amounting to RM2 million was released and banked 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 hands of PNSB, there was no board of directors meeting or 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," he said.

"The above actions are certainly puzzling. Why did PNSB pay 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 the sale of the seven units? Why did it then attempt to re-purchase the units it had sold off?"

While Abdul Khalid refused to reveal the identity of the individual, he said that the person was neither Mohd Khir nor a Selangor politician.

"It's up to that individual to come forward," he told a press conference this afternoon.

He added that Mohd Khir is nevertheless involved in the affair as he was a signatory to the transactions.

Mohd Khir: Transfer process underway

In an immediate reaction, Mohd Khir conceded that all 12 units were purchased under his name due to the legal requirement in Saudi Arabia.

However, the former MB told Malaysiakini that he was in the process of transferring the ownership to the current menteri besar.

"As a matter of fact, I have already signed three documents to effect the transfer process - to have the name transferred to Abdul Khalid," he said.

Mohd Khir also clarified that the board had approved the purchase of all 12 units.

"The seven were sold to an individual but then the board of directors had wanted to purchase back the seven units. But I cancelled the transaction.

"I told the board of directors that it was not good to re-purchase the units even though it is sold back at the same price," he said.

Mohd Khir said that all the facts and figures pertaining to the transaction are documented and therefore there were no grounds for any wrongdoing.

"The point is, PNSB in this transaction is not losing any money. You can check the records," he added.

MACC informed of Khir's alleged action

In a related development, PKR Youth chief Shamsul Iskandar Md Akin has ‘informed' the Malaysian Anti-Corruption Commission (MACC) on the alleged involvement of former Selangor Menteri Besar Dr Mohd Khir Toyo in corrupt practices.

Shamsul however did not disclose the content of his complaint when asked by reporters although it is believed that the complaint was related to the recent property scandal involving state subsidiary PNSB.

Today at the MACC office in Shah Alam, Shamsul - along with a cow - resubmitted about 20 past complaints against Khir as a symbolic move to ‘taunt' the commission for its quick reaction against Khalid following a report lodged by a BN leader but slow to act against complaints made by Pakatan Rakyat leaders.