MCA through its Young Professionals Bureau Chief, Datuk Chua Tee Yong, held its fifth press conference yesterday, 17 July 2012, in its continuing attempt to raise allegations of impropriety by the Pakatan Rakyat Selangor Government in entering into a Settlement Agreement with Talam Corporation 2 years ago. MCA in its latest press conference now alleges that the Selangor Government is “shifting goalpost” in answering Chua Tee Yong’s allegations.
FALLACIES IN MCA’S ARGUMENTS
MCA and Datuk Chua Tee Yong should spare the public from suffering further insults to their intelligence by ceasing their disingenuous arguments on this issue. When reviewed logically, the fallacies and deceptive arguments are plain for all to see. Fallacies are fake or deceptive arguments employed by the intellectually dishonest to provide a false conclusion that proves nothing when the fallacies are finally exposed.
Half-truth is the fallacy of telling the truth but deliberately omitting important details in order to falsify and support a false conclusion. The first fallacy in MCA’s arguments is the use of half-truths, while deliberately withholding material facts. MCA has deliberately withheld the following material facts:
a) That MCA failed to disclose the debts were incurred during the BN administration of the Selangor Government;
b) That the Pakatan Rakyat Government acted to recover RM392 million debts owed by Talam to Kumpulan Darul Ehsan, Permodalan Negeri Selangor Berhad and Yayasan Pendidikan Selangor in connection with several property development projects carried out in the last 10 years;
c) That the BN Selangor State Government allowed Talam to incur the debts during the time 3 MCA representatives were Selangor EXCO members;
d) That the BN/MCA state government allowed the state GLCs and agencies to enter into highly questionable transactions in which Talam was given land as consideration for contracts before Talam had even completed its part of the contracts;
e) That the BN/MCA state government did not take any action to collect the debts to the extent Talam in its 2007 Annual Accounts did not consider the debts as current liabilities but instead treated them as long term payables;
f) That the BN/MCA state government failed, neglected and/or refused to take any action or proper action to collect the debts:
- Even after Talam was declared to be an affected issuer pursuant to Practice Note 17/2005 of the Bursa Malaysia Listing Requirements on 1 September 2006;
- Even though Talam had accumulated losses of RM446.53 million, as at 31 July 2008 with total borrowings of RM1.184 billion of which RM924.8 million or 78.1% of the total borrowings were in default;
- Even though Talam was unable to pay its debts when due because it had over RM2 billion in debt and trade payables whereas its receivables and cash was less than RM280 million;
g) That the debts were not secured and upon the winding-up of Talam, the preferred and secured creditors would have priority over the state and other unsecured creditors;
h) That Talam had proposed a restructuring plan to settle the defaulted debts by issuing various forms of preference shares and loan stock to its lenders which excluded the state GLCs and agencies;
i) That the Securities Commission had by a letter dated 25 September 2007 rejected Talam’s Proposed Regularization Plans; and
j) That there were various petitions filed by several creditors for the winding-up of companies in the Talam Group.
MCA has withheld the above information from the public in their press conferences. It is clear to those who have checked the publicly available information such as Talam’s public announcements on the settlement, its annual reports and circulars to shareholders that the Pakatan Rakyat State Government would not be able to recover any cash. The taking of the 13 pieces of land was the best available option in the circumstances.
LYING WITH STATISTICS
Another common deceptive argument is lying with statistics. This is using true figures and numbers to “prove” unrelated claims. MCA has lied with statistics by focusing only on 1 out of 13 pieces of land. MCA in alleging that the State Government had given an excessive value of RM181,082,000.00 for the Bestari Jaya land when the market value is RM139,090,000.00 failed to apply the proper statistics that is, that the Menteri Besar and the Selangor Government had taken back 13 pieces of land with a total market value of RM685,230,000.00 for a consideration of only RM676,094,000.00. Continue reading