Dr Koh must account for RM9mil loss

Guan Eng: Dr Koh must clarify PDC sale of shares August 18, 2008 - The Star GEORGE TOWN: Former Penang Chief Minister Tan Sri Dr Koh Tsu Koon has been asked to explain the RM9mil loss incurred by Penang Development Corporation (PDC) following the sale of shares in a subsidiary for RM29mil in 1992. Chief Minister Lim Guan Eng claimed that PDC sold shares in its subsidiary Penang Shipbuilding Corporation Sdn Bhd (PSC) to Business Focus Sdn Bhd (BFSB) on April 27, 1992 for RM29mil, which included land in Pulau Jerejak. “Instead of full payment being given over a normal period, BFSB was given an additional six years till 31 May 2008 to pay RM29mil. “Unfortunately, BFSB defaulted on the final RM9mil payment, which to has still not been paid. “BFSB has since been wound up. Most disturbingly, BFSB is now being sold and the land transferred to another company. “The whole transaction reveals not only the losses to PDC of at least RM9mil but also irregularities, failure to follow basic financial and management procedures as well as lack of compliance with legal documentation to protect the interests of PDC,” he said in a statement yesterday. Lim said Dr Koh should explain why as PDC chairman, he gave “special favours” to the company that resulted in the RM9mil loss without being able to get the land back. He said the failure of Dr Koh and the top management of PDC to follow-up and protect the interests of PDC was “most disturbing.” ”Dr Koh should give a full explanation to uphold accountability and transparency,” he said. Dr Koh could not be reached for comment. ...source