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SHAH ALAM, Nov 4, 2015:

Despite stating its non-operational status till year-end, controversial state government-owned company Darul Ehsan Investment Group (DEIG) through its subsidiary DEIG Land Sdn Bhd has accepted an offer to take up a RM500 million loan from a local bank. In making the claim Umno’s Sungai Panjang assemblyman Budiman Mohd Zohdi said that the loan was being used to settle the debts belonging to the state-owned Kumpulan Darul Ehsan Berhad (KDEB) to the state government. He explained that the debts were approved by the state assembly for KDEB to complete its full share acquisition of Kumpulan Hartanah Selangor Bhd (KHSB) following the company’s failure to manage a 2,800ha land worth more RM6 billion. “We were informed that on July 22, DEIG Land had received from a renowned local bank, a RM500 million loan offer to take up and settle KDEB’s debts. “The loan deal was reported to involve the state’s assets as security, including land,” he said during a Press conference at the Selangor state assembly lobby. The latest update comes after Selangor Menteri Besar Mohamed Azmin Ali had repeatedly insisted that the state-government owned entity has not begin operations. The loan offer, Zohdi claims is clear proof, that the company had applied for similar loans in the past despite just being established on May 19. He said that when the loan application was made and approved, DEIG Land had only two members in its Board of Directors and two shareholders with the initial value of RM1 which is chief executive officer Raja Shahreen Raja Othman and chief operations officer Soffan Affendi Aminudin. As such, Budiman called on Mohamed Azmin to explain on how company which has yet to begin operations could accept a RM500 million loan offer. “Please explain in a transparent, comprehensive and complete manner of all state -owned assets that are pledged to the bank as security in accept the offer of the loan ? “Isn’t everyone not facing a very high risk if the asset worth RM1.02 billion is pledged let alone by a private limited company which is only worth RM2 ?, ” asked Budiman. He explained further that he was informed that there was an original settlement deal where the state-owned Selangor State Development Corporation (PKNS) would purchase part of KHSB’s land bank from KDEB to enable, KDEB to settle its debts. “The settlement is seen as a win-win situation because PKNS will be owning a land bank that can be utilised up to 20 to 30 years whilst KDEB will receive funds to settle its loan. “As such why is that deal not happening instead ? This since PKNS lacks land for development when it has 3,000 strong workforce and expertise. “Is there any pressure for PKNS not to show interest to purchase and develop the land ? ,” he asked further.  

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