SHAH ALAM, Mar 6 – The state government has been advised that the sale of seven Al Marwa Tower apartment units in Saudi Arabia by Permodalan Negeri Selangor Berhad (PNSB) to an individual in 2007, may have contravened the Anti Money Laundering Act and the Exchange Control Regulations.

Political Secretary to the Dato’ Menteri Besar, Nik Nazmi Nik Ahmad said in a statement today that the state government was concerned about the issue and PNSB had sought advice from Bank Negara on it.

This was to ensure that the state subsidiary was clear of abetting a violation under these laws.

“The state government also urges fomer Menteri Besar Dato’ Seri Dr Mohamad Khir Toyo who had represented PNSB in the purchase of the Saudi apartments, and the individual to come forward to clarify the matter in the interest of the state,” he said.

He said, according to PNSB Directors Circular Resolution dated September 14 2007, stated that PNSB had approved for the purchase of five units of properties amounting to RM8.3 million.

However, records show that between September 17 and 19 2007, PNSB had transferred RM25.6 million to Saudi Arabia for 12 units of properties. Between September 25 and October 3 2007, PNSB received cheques amounting to RM17.2 million from an individual, said to be for the purchase of seven units from PNSB at the price PNSB had paid for.

Nik Nazmi explained that while the purchase of the apartments by PNSB was traded in Riyal, the payment from the individual was transacted in the Malaysian Ringgit.

“To date, PNSB has no records to show that the individual had obtained the  approval to invest in properties abroad,” he said. – NOOR ALLIA KASSIM