Apartment in Mekah; Ada Org Tu Buat Duit Atas Angin..

this is probably the apartment thay are talking about.
"The above actions are certainly puzzling. Why did PNSB pay more than RM25 million when the board only approved about RM8 million for five units?

"Why did it then accept about RM17 million – said to be for the sale of the seven units? Why did it then attempt to re-purchase the units it had sold off?"

The above are statement by Menteri Besar Selangor Khalid Ibrahim. Poor Khalid, he is puzzled and had no clue what is happening.

Let me put forward a theory, dont blame me if this is wrong, this theory is based on normal assumptions, of what normal greedy Muslim (I assume he/she is Muslim, because the said property is in Mecca) would do to make money. Never mind its unethical bla bla.

It probably work like this:
Someone with contacts and friendship with the Saudi developer, probably the BinLadin Group (forgive me if I were wrong)got offered apartments in Mecca, guaranteed and dont have to queue or go through ballot box (wouldnt that normal for hot properties?).
Incidentally he/she doesnt have money, well not enough anyway, so he passed on the offer to PNSB. After deliberation, the Bards (sic, should be Board) of Directors approve for 5 units, costing RM2mil each. But this fellow is very high up in the PNSB, so he ordered the Finance Director to write cheque for RM25millions, enough for 12 apartments.
So he used this money to buy 12 apartments, and given that the property market was hot at the time, the price of the apartments immediately increased in value within days. So after paying for 12 units, soon as he got the title, he sold it again, ie the 7 units and make profit. It was not unusual that price of properties in Middle East increase 5% or even 20% of the original offered price within days. Look at Dubai property market that time. So this person made profit on PNSB's money. Thats why in a short time he managed to pay back PNSB RM17million.
It would be especially useful if that the apartment is in your name, so you can buy and sell as you wish.
Didnt the Bard of Directors asked to buy back the apartment that was resold? Yes, and what did he said?
"Kalau dah jual tu tak elok minta beli balik.."


Discrepencies in PNSB's purchase of Saudi apartments

SHAH ALAM (Feb 24, 2009) : The Mentri Besar Incorporated (MBI), a state government subsidiary, said today there were discrepancies in Permodalan Negeri Selangor Berhad's (PNSB) purchase of properties of Al Marwa Tower Makkah, Saudi Arabia in 2007.

The Mentri Besar's Office said in a statement today the discrepancies were detected by external auditors and brought to the attention of MBI's current board of directors which has appointed advisers to evaluate expenses of the state government's subsidiaries.

The discrepancies were uncovered amid concerns by MBI over PNSB's delay in finalising the 2007 financial accounts.

The statement said, according to the PNSB Directors Circular Resolution dated Sept 14, 2007, PNSB had approved the purchase of five units of properties amounting to RM8,352,427.66.

However, records showed that PNSB had between Sept 17 and Sept 19, 2007 transferred RM25,603,545 to Saudi Arabia for 12 units of properties.

Between Sept 25, 2007 and Oct 3, 2007 PNSB received cheques amounting to RM17,251,092 from an individual – said to be for the purchase of seven units from PNSB at the price PNSB had paid for. No official receipt was issued to acknowledge it.

It has come to the attention of board of directors this year that PNSB prepared and signed four cheques amounting to RM8,000,205.20 to an individual, who is the same person who had earlier handed over cheques to PNSB amounting to RM17,251,032 stated above.

However, three of the four cheques prepared and signed by authorised signatories were later cancelled.

The fourth cheque amounting RM2 million was released and banked into the account of the individual. PNSB then arranged with the bank to stop payment.

"Between the date of the acquisition of the additional seven units making a total of 12 units and the disposal of the seven units leaving five units in PNSB's hand, there was no board of directors meeting or Board of Directors Circular Resolution for the transaction.

"Up to the point of issuance and cancellation of cheques to the individual, no board minutes or circular resolution were made," said the statement.

"It should be noted that the acquisition was made in the name of then PNSB chairman Datuk Sri Dr Mohamad Khir Toyo as Saudi requirement that properties within the Mecca area must be in the name of Muslim individuals."

At the board of directors meeting in December 2007, Khir disclosed that the properties were in his name but assured the directors he would not be making any claim over them.

However, there was no mention of the exact number of units held by him.

"The above actions are certainly puzzling. Why did PNSB pay more than RM25 million when the board only approved about RM8 million for five units?

"Why did it then accept about RM17 million – said to be for the sale of the seven units? Why did it then attempt to re-purchase the units it had sold off?"

The statement said Mentri Besar Tan Sri Abdul Khalid Ibrahim, the current MBI chairman, intends to find the answers to the above questions and will not hesitate to take strong action should there be any criminality involved.