Stir in Selangor assembly over RM700 million PKNS losses, handover of project to ‘bankrupt’ firm

Gombak Setia assemblyman Hilman Idham created a stir at the state legislative assembly today by bringing up the financial performance of the Selangor State Development Corporation (PKNS) and the Sungai Klang development project on 600 acres of land belonging to the state government.

Hilman, reading from a written reply, had said that PKNS recorded a pre-tax loss and zakat of RM719.2 million for the period ending Dec 31, 2020.

He said the loss, the biggest in PKNS’ history, was due to a decline in investments involving its subsidiaries worth RM636.6 million.

“What is the cause of this decline?” he said in addressing the debate on the Supply Bill 2022.

“It is not enough for the state government or PKNS to use the excuse that the property market was weak.”

He said studies on the various property companies listed on Bursa Malaysia from 2018 to 2020 had seen them recording profits, not losses as posted by PKNS.

“I am confident that the companies that succeeded implemented corporate strategies in a prudent and orderly manner, and followed sound administrative procedures in meeting today’s challenges in the real estate field,” he said.

He also said the losses showed that PKNS had basic structural issues as its business was based on property.

“We would like to ask if PKNS is facing a current threat, in which case we should ensure that we can help it out of its problems,” he said.

Hilman also questioned Selangor’s decision to hand over the Sungai Klang development project on government land to a company with negative net tangible assets.

He said the project would involve some 600 acres of land along a 56km stretch of Sungai Selangor.

“What was the rationale for handing over the project to a bankrupt company?” he said.

“We should not take things lightly and be lazy, and in the end the victims who are made into scapegoats are the civil servants.”

Among those who responded to his remarks was Banting assemblyman Lau Weng Sang who asked him to reveal the name of the company in question.

Speaker Ng Suee Lim then told Hilman to end his debate, saying the state government could respond.