The government has spent RM1.2 billion paying for losses incurred by national sewerage company Indah Water Konsortium (IWK) since taking over the company in 2000.

In a written reply in parliament to DAP Rasah parliamentarian Anthony Loke, Finance Minister Najib Abdul Razak said that this was because the low sewerage fees could not cover the company’s operational costs.

According to Najib, who is also prime minister, IWK owes the government a whopping RM1.98 billion in excess of the company’s assets worth roughly RM1.2 billion.

The minister also denied media reports which claim that the consortium will be privatised to 1Malaysia Development Berhad.

“For your information the government has no intention to privatise (IWK),” he said.

He added that instead, the government is looking to “restructure” the sewerage industry, as proposed by the Energy, Green Technology and Water Ministry.

Najib said the government also supports the ministry’s initiative to “review the sewerage tariffs and to guarantee future capital expenditure”.

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