By Khairul Khalid
Khalid Ibrahim
Former Selangor Menteri Besar (MB) Abdul Khalid Ibrahim has slammed the state administration for issuing an operating licence for clean water to Splash (Syarikat Pengeluar Air Selangor).
“I am puzzled. This contradicts the Selangor’s water restructuring plans to return water assets to the state. I’m worried that this will lead to the Selangor public paying more than the RM9.65 billion agreed for the state takeover of the water concessionaires.
Any price above that is akin to robbing the rakyat’s resources to enrich the greedy concessionaires, “ said Khalid in a media statement.
The former MB also accuses the water concessionaires of “milking sinful profit” from the Selangor public based on a lopsided agreement that failed to prioritise the people’s interest
Khalid adds that without full control of the water industry, Selangor government may not be able to continue its 20 cubic metre free water programme due to lack of funds.
“This would also allow the concessionaires to execute the concession agreement, which would allow water tariff increment up by 52% by 2015. To make it worse, the state will to pay water tariff increment arrears amounting to more than RM2 billion,” said Khalid.
Splash is one four water concessionaires in Selangor, other than Puncak Niaga, Syabas (Syarikat Bekalan Air Selangor) and Abbas. It operates, among other things, the Sungai Selangor dam that supplies approximately 60% of water supply in Klang Valley.
Selangor’s long awaited water restructuring has collapsed after current MB Azmin Ali announced recently that the master agreement has lapsed and will not be extended further, as requested by the government.
The federal and state governments are arguing about the transfer of state land in relation to the water assets. Putrajaya is asking for the land, as well as the water assets, to be temporarily transferred to the federal government. Azmin is adamant that Selangor will not concede any state land in the deal.
Khalid believes that the argument over land ownership in the water agreement between Selangor and Putrajaya can be solved through negotiations.
“I have met the Energy, Water and Green Technology Minister (Maximus Ongkili) and he has given me the assurance that the ministry will work towards implementing the agreement to make way for a holistic restructuring of the Selangor water industry as intended by the Water Services & Industry Act 2006,” said Khalid.
Last November, after years of gridlock, Puncak Niaga finally agreed to sell its water assets to the Selangor government for RM1.6 billion. It received shareholders’ approval for the deal early this year.
That set in motion the restructuring and takeover of private water assets by the state. It was seen as a precursor to negotiations with the other remaining private water concessionaire in Selangor, Splash (Syarikat Pengeluar Air Sungai Selangor Sdn Bhd).
However, despite shareholders’ approval, Puncak’s sale was delayed due to the ongoing wrangling between the Putrajaya and Selangor administrations.
“The sale could not be fulfilled due to two pending matters. The transfer of water assets between the state and federal governments and consent from Unit Kerjasama Awam Swasta (Ukas), Prime Minister’s Department on the sale of Syabas,” said Puncak in a statement.
It was reported that the delay is due to differences in contention over control of certain water assets in the state (Semenyih and Bukit Nanas dams, and the pipe network) between the federal and state governments.
Azmin has since said he had reached out to Prime Minister Najib Razak to intervene and salvage the collapsing water deal.
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