Undeterred by the legal action threat made by the Selangor Menteri Besar, Tan Sri Abdul Khalid Ibrahim yesterday, MCA continues to press on accusing the State government of further misused of public funds.

The party's Young Professionals Bureau Chief, Datuk Chua Tee Yong today claimed, the State government had overpaid Talam Corporation Bhd by RM42 million for a plot of leasehold land as part of a debt restructuring deal in 2010.

In his latest claim, Datuk Chua, who is also Deputy Agriculture and Agro-based Minister, alleged the state government had paid RM181 million to Talam Corporation for the 2,263-acre plot of land in Bestari Jaya despite being valued at RM139 million.

Citing a land valuation report by Mitra Valuers and Property Consultants Sdn. Bhd. dated October 11, 2010, he revealed that 44 per cent or 1,103 acres of the land also has encumbrances.

He further explained that 438 acres of the land are underwater, requiring the state to spend between RM50 million to RM100 million to do earth filling works before any developement can proceed.

The Labis MP added, 575 acres of the land are also forest and ecology reserves with little commercial value and also noted that some parts of the land has a high-tension transmission cable cutting across.

"This transaction gives rise to much speculation and questions. Either Talam has good negotiation skills, or the Selangor Pakatan Rakyat government does not understand the true scenario or incompetent, or they consider the people's money is not important," said Datuk Chua.

When asked on the threat of legal action by the Selangor State government, Datuk Chua said he has yet to receive any letter from Tan Sri Khalid on the matter.

He also assured that he will disclose more detailed information from time to time to back his claims.

On Tuesday, Datuk Chua alleged that the PKR-led State government misused RM1 billion in public funds by buying over Talam Corp's RM676 million assets to bail out the company and supplied additional funds worth RM392 million.

Tan Sri Abdul Khalid however denied the claim and threaten to file a civil suit against MCA for the allegation.