Four private water companies have until today to decide whether to accept the Selangor state government’s offer to take over their operations, to the tune of RM9.65 billion.
The decision reached by this deadline will make or break the MoU agreement forged between the Selangor state government, ruled by the Pakatan Rakyat (PR), and the Barisan Nasional (BN) led Federal Government over the handling of the current water crisis.
The four companies are Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga Sdn Bhd (PNSB), Konsoortium Abbas (Abbas) and Syarikat Pengeluar Air Selangor Holdings Berhad (Splash).
The takeover of the four companies’ operations has been a sticking point by the Selangor state government in exchange for its approval for the construction of the Langat 2 water treatment plant, estimated to cost up to RM3.8 billion.
Critics of the memorandum of understanding signed on February 26 say that its terms are silent on Putrajaya’s role in helping to carry out the takeover exercise. Charles Santiago, a former member of Selangor’s water panel on water industry reform, said the MoU stated only that it will “facilitate” the takeover.
In contrast, the MoU states that Selangor’s approval for the Langat 2 project, as per Putrajaya’s demands, are binding and irrevocable.
It further states that Selangor must give out these approvals, which include local council development orders and land acquisition documents, within 30 days after signing.
Economist Azrul Azwa Ahmad Tajuddin, however, said that the clause on “facilitating the takeover” meant that Putrajaya would use its authority under the Water Services Act 2006 (WSIA) to take over the firms if the RM9.65 billion offer was rejected.
Another former member of the state water panel, Dr Dzulkefly Ahmad, said the clause should have specifically stated that Putrajaya would invoke the WSIA in the event the four companies reject the offer today.
The deal was signed by Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim on behalf of the state, and Water, Energy and Green Technology Minister Datuk Seri Maxmimus Ongkili for Putrajaya.
Source: The Malaysian Insider
