The Talam fiasco requires a good financial and accounting background person to fully understand or digest the spirit of the whole issue. I will present the surface of Talam scandal without involving complicated financial calculation or explanation.
1. What's the fuss about Talam? Selangor Pakatan Rakyat government has been fishy (read: defensive) in so far as Talam Scandal is concerned.
2. Why are they being fishy?
Imagine today, a seller values a house at RM 139,000 and yet somebody were to purchased the house at RM 181, 000. If the figure is lower of RM139,000 then it still make sense but RM181,000 for a RM139,000 house is something that is very unusual.
How many times we ever heard of people buying things way higher than the seller's price? Much worse if you have a friend who owned a house in similar area and his value is only RM81,000! The example above is a good starting point to digest how come and why Selangor Pakatan Rakyat government purchased different land, property, office, shares and etc in extremely ridiculous price from what they are actually worth?
And the total of overvaluation amount up to hundreds of millions. If 1 or 2 purchase(s) are being overvalued or ridiculously priced, then maybe it is acceptable where human may overlook or being careless or whatever you name it. But then, there are easily more than 5 of their purchases that are overvalued.
Would you call that a coincidence still? Just imagine your friend has a house worth RM 81,000, but I buy a nearby house from your neighbor at RM 181,000 even though seller values it at RM139,000.
You want to sell a car that is valued at RM 113,000, but I buy from you the same car at RM 345, 000. Your watch is worth RM 8,000, but I buy from you at a staggering RM 27,000. Will there be so many coincidences that whenever I purchase things from you, they will always be overvalued?
Will it still be a coincidence, or a mistake, or in reality, I actually do it on purpose with the intention of buying everything from you with at an overpriced value? Then may be, you will come to a conclusion that I actually do it on purpose -- and what is the ultimate intention of me doing so? That alone should give you a cogent reply as to why Pakatan is so fishy about this whole Talam Scandal. I mean, who -- in the right frame of mind --would buy anything at double or triple than its actual worth? Would you?
3. How did Selangor's Pakatan Rakyat gain anything if the purchases are being overvalued?
Imagine the one buying your house just now is actually a company, and the one buying from you is one of the company director. He buys it using the company money, not his own money. I repeat, it is the company money.
If not, you would think that who will be so stupid to buy things at such an extreme overvalued rate? I am just pointing out a possibility here.
Do you think it is possible for the company director to spend RM181,000 of his company money to buy your house to strike a deal with you since the property is only valued at RM139,000?
For instance, let 's say I use my company money to buy from you the house at RM 181,000 and in return, you to have to reimburse me back RM21,000 and keep the remaining RM21,000 for yourself. If that's the deal, don't you think that you will actually agree to it since you can earn RM21,000 for doing nothing?
Is a win-win situation, is it not? Don't you think it is also possible for the same scenario to happen in Talam's overvaluation issue?The company here is Selangor Pakatan Rakyat, meanwhile the directors are also Pakatan Rakyat's politicians. That also gives the answer why they purchased properties at an overvalued price.
4. What is the White Paper?
When Datuk Chua Tee Yeong (MCA) found out about the whole overvalued purchases's fiasco -- where the company money is actually Selangor's tax-payer money which is being abused -- he started questioning why this company never revealed its financial report during the company's meeting as promised two years ago?
The metaphor of a company's financial report is actually the equivalent of the White Paper for a government. When you run a company you will then have to provide your company financial report during the company's meeting; similarly when you are running a state government, you will be required to present your White Paper during the State Assembly's meeting.
5. The overvalued properties are proven to be of low commercial value? Datuk Chua Tee Yeong (MCA) has proven to us that all the overvalued purchases of Talam have low commercial value.
That is why they mainly sell it only to their brothers and sisters, you can't sell it to outsiders who will not get higher price -- or any ROI -- after two years. As to date, they have bought an empty hill slope land, a mining pond, few vacant office lots (which can’t be let out on tenancy basis) and underwater land in bad location.
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