Selangor Menteri Besar Abdul Khalid Ibrahim today said the federal government invoking Section 114 of the Water Services Industry Act (WSIA) to consolidate water concessionaires in the state will eventually return managing powers back to the state.

Responding to fears and criticism that the federal government will use their powers to manage the water concessionaires themselves and unfairly reward concessionaires, Abdul Khalid said the appointment of two of its officers as administrators for the water concessionaires gives "full powers" to the state to manage the water industry.

"WSIA states that the powers must be handed back to the state government," he said during a press conference after chairing the state exco meeting.

"Section 115 of the act states that the government will hand over the management to the party that owns the assets, and water assets in Selangor is owned by the state government," he said.

The Water, Energy and Green Technology Ministry had, through a letter on Sept 9 last year, said that it would invoke the act if the state government and water concessionaires cannot reach a conclusion in the state's attempt to take over the concessionaires by Dec 31 last year.

His own party members, namely PKR strategy director Rafizi Ramli and former state exco Dr Xavier Jeyakumar, have both expressed fears that the federal government will use their powers to take over water assets in the state once the act is invoked.

Rafizi yesterday warned the federal government not to use its powers to increase water tariffs in the state and then use it as political ammunition against the state government.