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Khir Toyo implicated in property transaction

PETALING JAYA, 25 Feb 2009: The Selangor government has alleged inappropriate payments worth RM25 million for properties in Mecca, Saudi Arabia authorised by former Menteri Besar (MB) Datuk Seri Dr Mohammad Khir Toyo.

In a press statement issued late last night, current MB Tan Sri Abdul Khalid Ibrahim’s office said that under Khir’s leadership in the previous administration, Permodalan Negeri Selangor Bhd (PNSB) paid RM25.6 million for 12 units of Al Marwah Tower Makkah properties between 17 and 19 Sept 2007.


Khir Toyo (Pic by johnleemk; source: Wikipedia)
However, on record in the PNSB Directors’ Circular Resolution dated 14 Sept, approval was only given for the purchase of five units worth RM8.35 million.

Khalid’s office said the discrepancy was uncovered by external auditors going through PNSB’s 2007 accounts.

After paying the RM25.6 million, PNSB then received RM17.25 from an individual, who purportedly bought seven units. No official receipt was issued to acknowledge the sale by PNSB to the individual, whose name Khalid’s office did not reveal.

The transaction dates for PNSB’s sale of seven units to this individual was between 25 Sept and 3 Oct 2007 based on the cheques PNSB received for the total amount.

In 2008, four cheques by PNSB amounting to RM8 million were prepared and signed to the same individual. However, three of the four cheques were cancelled, and only one cheque for RM2 million was released into the individual’s account.

During the period when PNSB bought the additional seven units (on top of the five approved) and disposed of them to the individual, there was no board of directors meeting, nor was any directors’ circular resolution on the transactions issued.

Neither were there any board minutes or circular on the issuance and cancellation of the three out of four cheques prepared for the individual.

Khalid’s office noted that the property purchases were made under Khir’s name, in line with Saudi requirements that such transactions must be made in the name of Muslim individuals.

Records of a board of directors’ meeting in December 2007 showed that Khir disclosed that the properties were in his name, and that he gave an assurance that he would not make any claim over them. However, there was no mention of the exact number of units held by him.

PNSB is a wholly owned subsidiary of the Selangor government.

Khalid has vowed to investigate the matter and to take action if any crime was committed.

This revelation follows PNSB’s board of directors’ order to two of its top officials to go on a month’s paid leave pending investigations into weaknesses and irregularities in PNSB’s financial accounts.

These irregularities involve records submitted to the Inland Revenue Board, and also property purchases in Mecca from 2006 to 2007.

The two officials asked to go on leave are chief executive Datin Khairiyah Abu Hassan and finance manager Nora Azmin Radzuan.

See also:
Potential PNSB breach of banking rules

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7 Responses to “Khir Toyo implicated in property transaction”

  1. Mike says:

    Let’s hope the “new” MACC can look into this and prove that it’s not the old version with a name change!

  2. fyl says:

    The deal sounds fishy and cause for concern as this involved millions of ringgit of state money being used. The transaction was not properly recorded in the PNSB books.

    Clearly, this is a good case for MACC to look into as board directives were not adhered to.

    Investigations should delve into the cheques issued and canceled and this points to intention to fraud. Mere verbal assurance for no claim on the property is not valid in a court of law.

    The individual should be investigated thoroughly and charged if found guilty.

    No wonder most of our state GLCs are in the red as even the basic bookkeeping rules are not followed.

  3. Sunny says:

    If we check the figures, it tallies. 25.6 -17.25 = 8.35, which is the amount approved by the board so there is no hanky panky because PNSB did not lose any money. On the cheques issued, we have to wait for the other side of the story. We can’t be listening to only one side. I think Khalid is just trying to spin for revenge for the lembu and Lexus thing. Tit for tat?

  4. P.A.Chew says:

    Sunny,

    That’s not the point. The point is why were company funds used to “help” the certain individual to purchase the properties in the first place? Such things have to follow proper procedures and law. What if that certain individual did not pay in the first place? Then who would be responsible for the excess units bought? Will the officers be hauled up? Were they acting on “arahan dari atas?” A duty was owed to PNSB by the officers and that duty was breached.

    Like fyl said, verbal assurances that Khir will not claim mean little in court. The property legally belongs to him.

    BTW of course it’s tit for tat. Better late than never to spill the beans on Khir and gang though Khalid should not have waited so long.

  5. bs says:

    Sunny, unless you are one big corporate governance and compliance officer, I’d offer the view that it is quite extraordinary for a company to exercise such generosity as to advance RM17.25 million to help complete some stranger’s transaction. It would be wrong if such advance has not been duly authorised by the board, and it would be more odd and infinitely more tantalising if such transaction had been condoned by the directors.

  6. Netural10 says:

    Sunny, why are you ampu-ing Toyo? It is a known fact that this public enemy #1 is a master thief who stole the rakyat’s money. Not only YB Khalid but other reports on Toyo have been ignored. In theSun newspaper, citizen Nades has exposed the plunderings a few years back and yet no action was taken against Toyo. Now you have the audacity to say it is “tit for tat”.

  7. George A says:

    MACC, “Walk the Talk.”


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