Selangor MB: Something fishy over water decision
S PathmawathyPublished: Feb 19, 2009 11:35 AM | Updated: Feb 19, 2009 11:49 AM
Selangor Mentri Besar Khalid Ibrahim slammed the National Water Services Commission (Span) for pandering to the private water concession companies rather than the people.
Selangor Mentri Besar Khalid Ibrahim slammed the National Water Services Commission (Span) for pandering to the private water concession companies rather than the people.
Khalid said this today following Span’s backtrack on the federal government decision to allow the state to conduct the takeover of Selangor water assets and maintenance yesterday.
“The Selangor government regrets the decision by the chief operating officer of Span, Teo Yen Hua, to negotiate directly with the four concession companies to acquire their water treatment and distribution assets as part of the restructuring exercise in Selangor,” said Khalid adding that the move was unwarranted.
These companies are Konsortium Abass Sdn Bhd (Abass), Puncak Niaga Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).
Last week Selangor offered a total of RM5.184 billion to Puncak Niaga which owns 70 per cent of Syabas and Splash to take over their water assets and treatment plants in the state.
“This move is inconsistent with the federal government’s decision on Jan 16, 2008 allowing the state government, through Kumpulan Darul Ehsan Bhd (KDEB) - Selangor's investment arm - to take over the operation and maintenance of the water assets from the concessionaires in a joint exercise.
Selangor to get answers tomorrow
“It would subsequently enter into a sale and leaseback of the water treatment and distribution assets from Pengurusan Aset Air Bhd (PAAB).
“Pursuant to that decision, the state had taken all efforts to ensure that the restructuring exercise is completed in a manner that benefits the people of Selangor and Kuala Lumpur,” said Khalid.
According to Khalid, the concessionaires are supposed come back with their answers on Selangor's offer tomorrow and should it be completed by Mar 31, it would prevent an exigent 37 per cent hike in water tariffs by Syabas.
At a press conference in the Parliament lobby today, Khalid said the decision undermines the federal and the state constitutions as well as the federal-state relations.
Asked on Teo's claims that the direct negotiation between the federal government and concessionaires would maintain low water tariff, Khalid said: “If they (federal government) think they can negotiate much lower than Selangor's terms they must tell us.”
Khalid also said that if the federal government pays a higher amount the people would suffer as the amount paid would be translated into the price that customers in Selangor would pay in future.
“But if they (Span) think that they can negotiate a lower price, please tell us and we will support them.
“We urge that he (Teo) declares his interest on the matter. If any irregularity is found, we will call for his resignation,” said Khalid.
Khalid said this today following Span’s backtrack on the federal government decision to allow the state to conduct the takeover of Selangor water assets and maintenance yesterday.“The Selangor government regrets the decision by the chief operating officer of Span, Teo Yen Hua, to negotiate directly with the four concession companies to acquire their water treatment and distribution assets as part of the restructuring exercise in Selangor,” said Khalid adding that the move was unwarranted.
These companies are Konsortium Abass Sdn Bhd (Abass), Puncak Niaga Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).
Last week Selangor offered a total of RM5.184 billion to Puncak Niaga which owns 70 per cent of Syabas and Splash to take over their water assets and treatment plants in the state.
“This move is inconsistent with the federal government’s decision on Jan 16, 2008 allowing the state government, through Kumpulan Darul Ehsan Bhd (KDEB) - Selangor's investment arm - to take over the operation and maintenance of the water assets from the concessionaires in a joint exercise.
Selangor to get answers tomorrow
“It would subsequently enter into a sale and leaseback of the water treatment and distribution assets from Pengurusan Aset Air Bhd (PAAB).
“Pursuant to that decision, the state had taken all efforts to ensure that the restructuring exercise is completed in a manner that benefits the people of Selangor and Kuala Lumpur,” said Khalid.
According to Khalid, the concessionaires are supposed come back with their answers on Selangor's offer tomorrow and should it be completed by Mar 31, it would prevent an exigent 37 per cent hike in water tariffs by Syabas.
At a press conference in the Parliament lobby today, Khalid said the decision undermines the federal and the state constitutions as well as the federal-state relations.Asked on Teo's claims that the direct negotiation between the federal government and concessionaires would maintain low water tariff, Khalid said: “If they (federal government) think they can negotiate much lower than Selangor's terms they must tell us.”
Khalid also said that if the federal government pays a higher amount the people would suffer as the amount paid would be translated into the price that customers in Selangor would pay in future.
“But if they (Span) think that they can negotiate a lower price, please tell us and we will support them.
“We urge that he (Teo) declares his interest on the matter. If any irregularity is found, we will call for his resignation,” said Khalid.
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