Force buy Selangor water assets, government urged

By Khairul Khalid

Dzulkefly Ahmad executive director of PAS (Parti Islam SeMalaysia) Research Centre says has urged the federal government to show its sincerity and commitment to Selangor’s water restructuring by using the WSIA (Water Services Industry Act) to force the acquisition of water concessionaires in Selangor.

Dzulkefly Ahmad

Dzulkefly Ahmad

“Khalid Ibrahim (Selangor Menteri Besar) has to press the federal government to invoke WSIA and take over the water concessionaires. It is also provided for in Clause 6 of the MoU (Memorandum of Understanding). In fact, it (Clause 6) gives the right to either party to abrogate the entire MoU unilaterally,” says Dzulkefly.

Clause 6 of the MoU that Dzulkefly refers to states that “nothing in the MoU may affect the rights of any parties in the memorandum of understanding to take the necessary action to protect their rights according to the federal constitution or any related laws.”

However, the WSIA is not specifically mentioned anywhere in the MoU. Section 114 of the WSIA empowers the federal government to acquire the state’s water assets if it is deemed necessary for national interest.

According to the Selangor MB’s office, Khalid will be issuing a joint statement with Maximus Ongkili (Minister of Energy, Green Technology and Water) later today in response to these latest developments on Selangor’s restructuring of the water industry.

Last month, the Selangor and federal government signed a MoU to facilitate a RM9.65 billion take over of the state’s water concessionaires and the approval of the long delayed Langat 2 water treatment plant.

After yesterday’s deadline for the concessionaires to accept the latest offer by the Selangor government, only one of the four concessionaires, Kumpulan Abass (a subsidiary of the Selangor state) has accepted. Splash (Syarikat Pengeluar Air Selangor), Puncak Niaga and Syabas (Syarikat Bekalan Air Selangor) have not agreed to the offer.

Last week, top Pakatan Rakyat leaders such as Anwar Ibrahim, Abdul Hadi Awang and Lim Kit Siang had thrown their support behind the MoU after being briefed by Khalid.

Dzulkefly says that it is clear that the water concessionaires are just holding out for more money and initial anxieties about the federal government’s intentions in the MoU are proving to be true.

“I want to remind the federal government that the MoU was done in good faith, especially the watertight terms of the Langat 2 approval. Now it’s back to square one and we (the Selangor state) are in deficit,” says Dzulkefly.

Klang MP (Member of Parliament) Charles Santiago

Charles Santiago

Charles Santiago, Member of Parliament (MP) for Klang also echoes Dzulkefly’s   sentiments by urging federal intervention via WSIA’s section 114 and delaying Langat 2 based on the latest stalemate with the water concessionaires.

Santiago had earlier questioned the mechanism of the MoU and argued that federal government should have taken over the water concessionaires outright under WSIA section 114 instead.

“The federal government has to show its integrity in honouring the MoU. If it federal government goes to court (to pursue the approvals for Langat 2), the restructuring process will be prolonged. This will also expose the federal government’s dishonesty in the MoU,” said Santiago.

Earlier today, MP of Petaling Jaya Utara Tony Pua had also called for the delay of Langat 2 and the federal government’s to exercise its powers under WSIA in light of the latest response by the water concessionaires.