(NST) - Talam Corporation Berhad chairman Tan Sri Chan Ah Chye should explain how he managed to convince Selangor State Development Corporation (PKNS) general manager Othman Omar to settle the company's debt amounting to RM392 million, a Malay rights group said yesterday.

Jaringan Melayu Malaysia (JMM) president Azwanddin Hamzah Said urged Chan to explain why PKNS was given the duty to repay the debt owed to Universiti Selangor (RM255 million), KHSB (RM115 million) and Permodalan Negeri Selangor Bhd (RM22 million).

He also called on Othman to explain why PKNS had singled out Talam Corporation for special treatment.

"Why did PKNS take over the debt only for Talam? What is so special about them? What about the rakyat of Selangor? Do they not deserve special treatment, too?" Azwanddin said here, yesterday.

The JMM president also questioned whether the decision by PKNS to take over the repayment of the RM392 million had received the approval of the Securities Commission.

"Chan and Othman are liable and should immediately clear the air over this allegation."

Earlier this month, MCA Young Professionals Bureau chief Datuk Chua Tee Yong had accused the Selangor government of misusing public funds to bail out Talam.

Chua had alleged that the state government had done so via a RM392 million supplementary budget passed in the state's legislative assembly in 2009.

In response, Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim had said the state government would prepare a white paper on the restructuring of Talam's debts as an attachment in the 2013 budget presentation.

Khalid said the white paper would be open to public scrutiny during the presentation of next year's budget.

"This is being done as many parties failed to understand Talam's debt restructuring," he was quoted as saying.