Khalid: Previous government undertook 62 risky projects - The Star

By Wani Muthiah and Edward Rajendra

SHAH ALAM: The previous state government had embarked on 62 joint venture projects worth RM36bil with private companies which the current government deems very risky.

Mentri Besar Tan Sri Khalid Ibrahim told the State Legislative Assembly Thursday that the joint ventures could result in the loss of close to 5,000ha of state land.

He said the previous government had provided the land for joint venture projects with private developers through state-owned corporation Permodalan Negri Selangor Bhd (PNSB).

He said the companies held a 70% stake in the joint ventures while the state only held 30%.

At a press conference later, he explained that the state was not protected as far as the issue of completion of the projects was concerned.

What made matters worse, he added, was that the deciding factor was not based on the companies’ capabilities and track records but on the “individuals behind them.”

[More at http://thestar.com.my/news/story.asp?file=/2008/5/23/nation/21341220&sec=nation]