Selangor is 20% shareholder of Grand Saga

Selangor will talk to Grand Saga as a ‘shareholder’
29-05-2008

Sharon Tan

KUALA LUMPUR: The Selangor state government will seek clarification from the Cheras-Kajang highway concessionaire Grand Saga Sdn Bhd on the closing of an access road through another channel — as a shareholder.

When met in Parliament lobby yesterday, Menteri Besar Tan Sri Khalid Ibrahim said a state-owned company holds an indirect stake in Grand Saga.

The tension between residents of Mahkota Cheras and Grand Saga ran high on Tuesday night when several people were injured while trying to prevent the company from re-erecting a barrier to prevent the residents from using the access road to their housing estate that bypasses the highway’s toll booths.

“Incidentally, unfortunately or maybe it is good one of our companies owns an indirect stake in the company. We need to ask the directors their responsibilities in this regard,” said Khalid.

Kumpulan Perangsang Selangor Bhd (KPS), a listed outfit controlled by the Selangor state investment arm Kumpulan Darul Ehsan Bhd (KDEB), owns a 19.7% stake in Taliworks Corp Bhd, which in turn owns a 55% stake in Cerah Sama Sdn Bhd which owns 100% of Grand Saga.

Taliworks yesterday reported a net profit of RM11.9 million for the first quarter ended March 31, 2008 (1QFY08), on a turnover of RM65.4 million. Meanwhile, KPS reported a profit of RM14 million on a turnover of RM98 million in the quarter ended March 31.

Khalid said the state government would come to a decision after finding out why the matter had deteriorated to such a stage.

“My position still stands that the slip road should be opened for the convenience of the people,” he said, adding the exco would discuss possible action and advice for the Bandar Mahkota Cheras residents.

He said he would also ask the Kajang Municipal Council president to explain the situation.

Khalid said the state viewed it as an issue between two business entities. He said while the state and Works Minister Datuk Mohd Zin Mohamed discussed how to resolve the matter, it was proper for the business group to allow the public to use the slip road.