On the loss of RM188.78 million by Kumpulan Hartanah Selangor Bhd (KHSB), Dato Abdul Karim bin Munisar, its executive chairman, told the Star on March 22 that: -
"the company [KHSB] decided to do a “one-off” prudent stand by writing down the book value of several assets; in particular the assets of two subsidiaries of the company – Brisdale Holdings Bhd and SAP Holdings Bhd."
There are hundreds of claims against Brisdale Holdings Bhd for late delivery and non-delivery of properties especially in the West Port projects and I believe there are also similar claims against SAP Holdings Bhd for which KHSB had made a full provision of RM55 million as liquidated damages to meet all claims.
By writing down the book value of Brisdale and SAP, is KHSB going to wind up both the companies soon?
Morally, the state govenment must make sure that all the investors' interest are protected in that all their legitimate claims for damages must be fully satisfied because they have placed so much of confidence in the projects undertaken by the government investment arm with their hard-earned money but the government eventually failed them. Hopefully not again with company winding-up proceedings before they are fully compensated.