Wednesday, 6 February 2013

Kedah's ability to repay loan questioned

ALOR SETAR (Feb 6, 2013): Kedah Gerakan Youth has questioned the ability of Bina Darulaman Berhad's (BDB) and its subsidiary, Kedah Sato Sdn Bhd to repay a RM330 million loan taken to finance the construction of the Insaniah University College (Kuin) campus in Kuala Ketil.

Its chief, Tan Keng Liang said BDB and KSSB were supposed to settle nearly RM50 million per annum for the loan whereas BDB's profit was only about RM20 million a year.

"Why BDB, which only has a paid-up capital of RM72 million, has to bear the debt for the project? How will the state government help BDB to settle the debt since it only has RM193 million in its coffer whereas the state's debt has reached RM2.6 billion?" he said at a news conference here today.
Tan said the loan was taken from Bank Islam Malaysia Berhad and Affin Islamic Bank Berhad by KSSB while BDB acted as a corporate guarantor.

"KSSB is wholly owned by BDB which was given a corporate guarantee for the repayment of the RM330 million loan," he said, adding that BDB, which was listed on Bursa Malaysia, is a subsidiary of the Kedah State Development Corporation with a 55 per cent stake.

Tan said Menteri Besar Datuk Seri Azizan Abdul Razak should solve the issue. – Bernama