Pua blasts gov't for bailing out Syabas

DAP parliamentarian Tony Pua today blasted the government for bailing out water concessionaire Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) despite its poor reputation.

The state and federal government have been long feuding over the former's attempt at trying acquire the concessions for the right to manage water and to provide cheaper water tariffs.

The government meddled in the deal after the National Water Service Commission (SPAN) announced that the former would directly negotiate with the water concessionaires to wrap up the the matter despite the go-ahead given to Selangor to lead the talks.

"It now appears that the water talks between the state and federal government is futile. Not only is the federal government insistent on awarding the license to Syabas, it has all this while been planning a bailout of Syabas which is poorly managed and has big cashflow problems," said Pua (right).

Citing a press statement issued by the Malaysian Rating Company (MARC) yesterday, where it was revealed that Syabas has been given an AA rating after news that it is to receive RM330 million from the government.

Apart from that, the loan agreement is expected to be concluded soon. It will be an unsecured and interest-free loan to enable Syabas to repay its outstanding debts and solve cashflow woes.

The Petaling Jaya MP said that Syabas will only need to commence repayment with an amount less than RM5 million until 2025, with the remainder payable only from 2026.

"This is a shocking development and we must ask the government why it is using taxpayers' monies to provide life-support to a private company, and at such lucrative terms?

"Even when the government forked out a RM4.6 billion soft loan to PKFZ which is a 100 percent government entity, a four percent interest rate was charged," said Pua.

Speaking on the behalf Selangor Water Review Panel, Pua said governments all over the world undertook bail-out exercises under very strict terms.

"It is only in Malaysia where the government is so generous to private concessionaires where back-loaded, interest-free and unsecured loans amounting to millions are possible," he added.

Christmas present for Syabas

Although Selangor was given the greenlight to lead the talks to nationalise the state's water assets, the government's intervention to stop the state from the negotiations resulted in the concessionaires rejecting Selangor's first offer in February.

Selangor had offered a total of RM5.184 billion to Puncak Niaga Holdings Bhd which owns 70 percent of Syabas and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) to take over their water assets in the state.

Numerous non-governmental groups, voiced their suspicions that the government and the Energy, Water and Communication Ministry were favouring the concessionaires at the expense of the well-being of the people.

"The fact that Syabas is facing critical cashflow problems reflects the complete failure of its privatised management, and should serve as the key reason to why the state government should be allowed to take over these concessionaire and be given the opportunity to consolidate and restructure the fragmented and inefficient industry," stressed Pua.

Kuala Selangor parliamentarian Dzulkefly Ahmad (left), who is also on the panel said the interest-free loan is a Christmas present to Syabas.

"We will like to make a last-ditch appeal to the Prime Minister and Finance Minister Najib Abdul Razak to intervene to revive the water restructuring exercise under the state government to ensure that the rakyat's interest is fully protected," added Pua.