COMMENT Speculation and negative talk over the RM9.65 billion water deal between Selangor and the federal government are now being circulated in the market place and coffee shops like wildfire.

 

Until the details are revealed, I for one would not say whether it is a good one. I would not also jump to the conclusion that it was done in a hurry, without transparency, and therefore it’s not a good deal for the rakyat.

 

MB Khalid Ibrahim may have had very good reasons to cut a deal with the federal government without involving too many others in the state exco and the Pakatan leadership.

 

But he owes all of us an explanation now.

 

Khalid by now must have been aware of the negative talk and speculation on the water deal. Some have gone to the extent to link the water deal with his earlier personal ‘out of court’ settlement with the Bank of Islam.

 

I suggest we wait for his explanation and do not jump to any conclusion. We must be fair to Khalid and to ourselves.

 

Many may not know that Khalid need not pay a single sen in cash to cut the deal. The RM2 billion in cash to be paid to Puncak Niaga boss Rozali Ismail would be paid out by the federal government via Suruhanjaya Pengurusan Air Negara (Span).

 

In fact, Khalid is using the value of the assets related to the water industry in the state to exchange for the control of the entire water industry via a special purpose vehicle (SPV) formed under KDEB, a fully owned state GLC.

All these assets will be transferred to Span under the arrangement.

 

In that sense Khalid has very good reasons to smile heartily upon signing the MOU.

 

I believe Khalid's only concession made in the water deal is none other than the RM10 billion Langat 2 water treatment outfit and the Pahang to Selangor water transfer tunnel.

 

Big question

Premier Najib Abdul Razak and Deputy Prime Minister Muhyiddin Yassin too smiled gleamingly at the signing ceremony because they too have gotten what they have wanted. I suspect Khalid did not touch the cost of the Langat 2 project which was a big question all this while.

 

Without Langat 2, the billions spent on the 44.6km water tunnels all the way from Kelau Dam to Sg Langat becomes meaningless.

I must admit that I was one of those who insisted that the Langat 2 project must not be approved by the state and the local government without being packaged together with the entire water restructuring exercise.

 

You see, Langat 2 is our only trump card in hand. Without it, the federal government would have no respect at all for the Selangor government.

 

I would not say the price tag is too high or unfair to any party. If everything is in favour of the state and nothing for the federal government and the water tycoon, there would be no deal till today.

 

I too was wondering why Khalid and energy, water and green technology minister. Maximus Onglili were not signing a MOA instead of settling for an MOU. Maybe Rozali and company have not agreed with the price tag or other terms and conditions.

 

Khalid should have also tell us whether he will honour what we have openly declared before the last general elections i.e. every Selangorian would be entitled to some 2,000 shares in the new state-owned water company.

Khalid and the exco have agreed that upon the successful takeover, the RM10 billion water company will be owned by all five million plus Selangor citizens, free of charge.

 

If you ask me, I would say Khalid will do it. That's a legacy Khalid wishes to leave as the MB of Selangor.

 

Meanwhile please stop all speculation on Khalid. Wait for his explanations and remember that the MOU is not binding however Muhyiddin wants to put it. What we need is a solid agreement, signed and sealed.

 

RONNIE LIU is Selangor DAP publicity secretary and a former Selangor exco member.