CONTROVERSIAL: The article by Zaini on page 11 in Utusan Malaysia yesterday.SHAHALAM: The Selangor government has demanded an apology from Utusan Malaysia for publishing an allegedly defamatory and false article relating to the Selangor Development Corporation's (PKNS) assets change.

Menteri Besar Tan Sri Abdul Khalid Ibrahim said stern actionwill be taken against the daily and the article's writer Datuk Zaini Hassan, who is also Utusan Assistant Chief Editor 1, if both parties failed to apologise to the state and PKNS.

"The state has directed its lawyers to send a notice to the daily and has also asked PKNS to do the same.

"Although we value media freedom, the media cannot use it to publish defamatory, false andmisleading articles," he told reporters after the state exco meeting yesterday.

In yesterday's edition, Zaini wrote that PKNSwants to sell five of its assets to another party, a claim that had been denied numerous times before by both Abdul Khalid and PKNS.

Abdul Khalid said PKNS only transferred the five assets – SACCMall in Shah Alam, Menara PKNS in Petaling Jaya, Kompleks PKNS in Shah Alam, Kompleks PKNS in Bangi andWisma Yakin in Kuala Lumpur – to its subsidiary Private Real Estate Company (PREC).

The move does not include millions of ringgit in transactions as claimed by some quarters, he added.

On another matter, Abdul Khalid slammed an allegation by Barisan Nasional MP Datuk Abdul RahmanDahlan that Pakatan Rakyat states practise "creative accounting" to modify their financial position in the Auditor-General’s Report 2011.

He said the allegation undermined the hardwork of the auditor-general and the National Audit Department in preparing the annual report.

"Selangor's financial statement was made according to the Government Accounting Standards of the National Accounts Department which are based on International Public Sector Accounting Standards.

"Our system that recorded all transactions and accountswas also used by other state governments in the country," he said.

Meanwhile, Abdul Khalid said he will announce the names of the independent task forcemembers for the Batu Caves development next week.



- By Radzi Razak / theSun