This comes after DAP’s Keranji assemblyman Chong Zhemin accused MCA of profiteering from Delta Pride (M) Sdn Bhd, which has a 30-year contract for the construction and management of TAR UC student hostels on its KL Campus.
But MCA central committee member Pamela Yong, who is also part of the TAR UC board, said her party could have made more money building a luxury residential complex.
“If MCA’s main objective was to score a quick profit, these 10 blocks of 5-storey campus buildings would have been torn down to make way instead for 10 blocks of high-end luxury condominiums in the heart of Kuala Lumpur listing it as the most exclusive premium real estate property owned by MCA,” she said.
She said the monthly fee of RM215 per room was among the cheapest for private and public universities and colleges, despite its location in KL.
“In addition, this RM215 is for a fully furnished room inclusive of 24-hour security, electricity, water charges on top of other student amenities.
“That sum equates to RM7.20 per day. Is that overly excessive?” she asked.
Yong said MCA became involved in the building of the hostels after the company previously awarded the contract went into financial difficulties during the 1997 economic crisis.
“As a result, MCA, was duty-bound to take over the concession, including the extended loans and build the hostels via Delta Pride.”
She said Delta Pride had been given a RM16 million interest-free advance from its parent company in 1998 to take over the project, a sum it finished repaying in 2016.
Yong said the party could have decided to put the RM16 million into an interest-bearing account, and double the amount in 18 years.
“Now, that is what one would call maximising one’s profit with minimal effort.”
She said Chong was “scraping the barrel” in claiming MCA benefited financially from student hostels.
Yong further said Delta Pride never benefited a single sen from government grants, or declared any dividend to MCA.
She said the RM11.42 million the company earned from construction and management of the student hostels would be kept until the end of their concession and spent on remedial works.
Yong also questioned Chong’s claim that Delta Pride had been paying out director remunerations amounting to RM204,000, saying the payments were directors’ monthly allowances of RM3,000.
“Many of these directors are also based out of state and it would be deemed appropriate if not decent to pay them an allowance of RM3,000 per month to cover any travel expenses incurred when they attend any scheduled meetings.”