Allegations of JCorp being unable to repay debts untrue - Khaled

Allegations by the Opposition that Johor Corporation (JCorp) was unable to repay its debts due to a high debt ratio is untrue, said Johor Menteri Besar, Datuk Seri Mohamed Khaled Nordin.

Mohamed Khaled, who is also JCorp chairman, said the Opposition failed to consider the actual financial position of the company in an inclusive manner.

"What is more important to me is that from 2012 to date, JCorp has successfully ensured that all its debt obligations were adhered to, on schedule," he said when winding-up debate on the last day of the Johor State Assembly here today.

Mohamed Khaled said JCorp's present debt ratio or liability, said to have reached 77 percent compared to current assets, was not the best indicator to evaluate the performance and financial position of the government-linked company.

"This is because the ratio does not take into account its non-current assets which overall stands at RM5.8 billion.

"If this is overall asset value is considered, then, the debt ratio or liability will become positive.

"It will in fact register a nett asset in excess of RM1.52 billion. This figure will still not have taken onboard the market value of JCorp's investments in listed subsidiaries such as Kulim and KPJ Healthcare Bhd," he added.

On another allegation that JCorp had failed to provide good returns to the state government according to the Treasury circular, Mohamed Khaled said it was baseless.

He said the returns to the state government all this while was not just in financial terms but also embraced other various forms of non-cash payments.

"This includes assistance in running clinics and the Waqaf An-Nur hospital which have to date treated 1.1 million people, irrespective of race or religion.

"At the same time, JCorp created up to 184,000 job opportunities until 2014, built 12,758 affordable housing units and assisted in building and renovating six mosques, including the RM28 million Sultan Iskandar mosque in Bandar Dato Onn," he said.

The Permas assemblyman said if all these were considered, JCorp on the whole has provided returns of RM84.8 million to the state government in the form of cash dividends and RM630 million in non-cash terms for a total of RM714.8 million.

"When this is compared to the RM284.5 million stated by the Opposition, JCorp has actually paid in excess of RM430.3 million to the state government, from what it should really have.

"So, if we want to value the contribution of JCorp or any other GLC, we must be fair and consider returns in both cash and non-cash terms," he added.