In August 1998, NERP estimated the total NPL in the banking system to be around RM 74 billion or 15.7% NPL at the end of 1998, rising to RM100 billion or 19.7% NPL by the end of 1999 if nothing was done.

The Ministry of Finance has established an Asset Management Company, Danaharta, to manage NPLs and rehabilitate viable businesses. Danaharta will cease operations by 2005.

The Government plans to issue RM 20 billion long-term bonds to the Employee Provident Fund, Petronas and the insurance companies.

Now, Danaharta has bought about RM 36.6 billion NPLs from the corporate and banking sectors, perhaps over 40% of the total NPLs. These loans have properties as collaterals. Hence, Danaharta manages about 1,000 properties. Why can't it dispose of them as quickly as possible?

12.8 hectares of prime land at the Stadium Merdeka

Because of the economic crisis in July 1997, UEM had difficulties servicing the loans that had the 12.8-hectare property as collateral. It was reported that this had gone to Danaharta. What is Danaharta doing with the property?

TTDI Development Sendirian Berhad

Danaharta manages RM 12 billion worth of property. Since July 2000, it has acquired TTDI worth RM 245.3 million from Permodalan Nasional Berhad, PNB, the state-run fund manager. Has it exchanged the stadium property for TTDI?

TTDI has expertise in managing properties. Presumably, the company can help Danaharta to manage properties. If Danaharta is only operating until 2005, why would it need to have so much expertise for long-term management?

We would like to know what Danaharta has done to the NPLs? It is slow in disposing properties. True, it has published glossy reports. But, it must be more transparent and accountable.

The public are concerned about the management of NPLs. Any hint of deliberate attempts to rescue a small number of people linked politically to the parties in the ruling coalition undermines confidence.

On the other hand, efficient management of NPLs by Danaharta projects a good image. So, let us have the truth.