SHAH ALAM: The Selangor Select Committee on Competency, Accountability and Transparency (Selcat) should investigate the RM500 million bank loan offered to a subsidiary of Darul Ehsan Investment Group (DEIG), said former Selangor menteri besar Abdul Khalid Ibrahim.
He said the investigation was necessary to clear DEIG of any power abuse or violation of procedures, as well as mismanagement, although the company admitted being made the offer, but it was rejected.
“There is also merit for the National Audit Department to investigate the allegation against DEIG,” he said in a statement here today.
On Wednesday, Sungai Panjang assemblyman Budiman Mohd Zohdi, from the Barisan Nasional (BN), had urged Menteri Besar Mohamed Azmin Ali to clarify on whether DEIG subsidiary DEIG Land Sdn Bhd (DEIG Land) had accepted the loan of RM500 million from a local bank.
The loan was allegedly to take-over Kumpulan Darul Ehsan Berhad (KDEB) and to settle KDEB’s loans, totalling RM424.7 million.
Budiman claimed that state government assets, including land, were used as collateral for the loan.
Prior to this, DEIG chief operating officer Soffian Affendi Aminuddin was reported to have said the company had applied for the loan and it was approved by the bank, but was it rejected as it was not approved by DEIG’s board of directors.