The DAP's Klang MP Charles Santiago has questioned the RM33.4 million remuneration package for Syabas chairperson Rozali Ismail, which he has described as 'unethical and irresponsible'.

NONE He queried the justification of the “excessive” remuneration that Rozali ( left ) received for the 2012 financial year as the chairperson for Puncak Niaga, which includes a RM20 million gratuity.

Rozali holds the position of chairperson in both Syabas and its majority shareholder Puncak Niaga.

“While it is within Puncak Niaga’s legal rights to pay whatever it wants to its directors, such excessive remuneration is by no means an ethical and responsible decision given that water is a public good,” he said in a statement today, criticising Syabas’ performance under Rozali’s management.

Amongst others, he said Selangor has been facing a water ‘crisis’ that he blames on Syabas and Puncak Niaga, and said that Rozali’s RM20 million gratuity could have been spent to maintain its pipes and reduce non-revenue water instead.

In addition, he said the government, via Acqua SPV Bhd, had acquired RM328.12 million in debt from Puncak Niaga in 2011 when the company was not doing well, and has also been given preferential loans by the government.

Unsecured soft loan

This includes a RM320.8 million back-loaded, interest-free, unsecured soft loan in 2009, he claimed.

In the meantime, he claimed that Rozali’s pay has been increasing from RM14 million in 2009, RM8.35 million in 2011, and finally RM33.4 million in 2012.

“Why is he being rewarded for incompetence, poor management and at the expense of taxpayers’ funds via the bailouts?  It raises serious concerns about the merit of Rozali’s gratuity,” said Charles.

The parliamentarian, who is also the coordinator of the NGO Coalition Against Water Privatisation, raised the possibility that the large remuneration package is a case of conflict of interest and poor corporate governance.

He said Rozali is the Selangor Umno treasurer, and claimed that several members of Puncak Niaga’s remuneration committee are current or former BN members.

“This is clearly a textbook example of using political cronies to take home a fat remuneration, or in this case, a gratuity payment.

“At a time when the global masses are questioning the role and responsibilities of corporations, Puncak Niaga and Rozali continue to operate with almost no fear of accountability,” he said.

He urged the National Water Services Commission (Span) to whether public funds had be abused and take the necessary action.

Malaysiakini has already contacted Puncak Niaga on Charles’ allegations and is awaiting a response.