By Khairul Khalid
Putrajaya is still very reluctant to enforce WSIA (Water Services Industry Act) to consolidate Selangor’s water assets, according to Klang MP (member of parliament) Charles Santiago.
Santiago was commenting on a recent statement by Selangor Menteri Besar (MB) Khalid Ibrahim saying that WSIA might not be necessary after all because two of the four water concessionaires are considering selling their assets at the last takeover price.
Charles Santiago
“He (Khalid) is stating the obvious. The federal government is not keen to invoke section 114 of WSIA,” said Santiago.
The Klang MP is skeptical that Putrajaya will go through with implementing WSIA to acquire Selangor’s water assets by force although it has received cabinet approval.
“Invoking WSIA is being used just to buy time. For what reason? I am not sure why,” said Santiago to KiniBiz previously.
Section 114 of WSIA allows for the forced acquisition of Selangor’s water assets in cases of national interest. It was invoked after three of the four concessionaires – Puncak Niaga, Syabas (Syarikat Bekalan Air Selangor), Splash (Syarikat Pengeluar Air Selangor) – failed to agree on the state’s last takeover offer of a total RM9.65 billion, as stated the MoU (memorandum of understanding) to resolve the longstanding water restructuring issue.
Nevertheless, Rozali Ismail chief executive officer (CEO) if Puncak Niaga and Syabas has appealed to Khalid to revert to the expired RM9.65 billion offer, despite conceding to a federal takeover via WSIA. Khalid is reportedly considering Rozali’s appeal as long as it doesn’t exceed the original offer.
This is despite Khalid’s earlier confirmation that the forced takeover of the state’s water concessionaires under WSIA would save the state RM2 billion by reducing payment to the water players to RM7.65 billion.
Tony Pua
Tony Pua, MP of Petaling Jaya Utara says the Khalid could consider the concessionaires’ appeals only if they don’t exceed the last offer.
“If the concessionaires make an alternative offer to the state that is within the confines of what was previously offered, there is no reason why the state can’t take the offer into consideration,” said Pua who is also a member of Selangor’s water committee.
“However, if they are still asking for more money, then we should forget it. Whatever it is, the state government should no longer be making any more offers to these concessionaires,” Pua added.
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