COMMENT Transparency? I’m all for transparency. Let’s give the devil his due, and then later we will come back to the politics.

In recent discussions I’ve had regarding defamation, I learnt that it can still be defamatory to publicly ask questions that may carry certain negative implications.

Someone who is suing for defamation may argue: ‘Why didn’t you ask me this directly in private before publishing your questions in the media?’ and use the fact that the defendant did not as proof of bad faith.

I availed myself of the opportunity to directly ask members of the Selangor menteri besar’s office questions regarding the Memorandum of Understanding (MOU) on the restructuring of Selangor’s water services industry.

Since some concerns were raised, I thought it would be wise to go to the source to seek clarification, based on facts and facts alone. This is what I learnt.

Who is paying how much?

The first issue concerns the total quantum being offered to the water concessionaires. The state government has not altered its offer of RM9.65 billion to them for over a year.

The fact that this sum has been agreed to by the federal government indicates that the state government’s valuation is indeed fair and that Selangor was right not to offer the concessionaires a higher sum.

The state government is confident that this figure will withstand international scrutiny, and will not vary in any significant way from any that may theoretically be arrived at via international arbitration.

Their confidence is reflected in the fact that they have openly offered the water concessionaires multiple opportunities over the years to let the price of the takeover be decided via international arbitration.

The fact that these companies did not pursue this opportunity can only indicate that they did not expect international arbitration to result in a higher price.

In light of these facts, I take the view that any speculation of a higher payout to the water concessionaires, along with some bizarre and arbitrary figures being thrown about, might perhaps be made in bad faith.

The Selangor government also successfully negotiated for the federal government to invest RM2 billion into the water restructuring deal. It must be stressed that this forms part of the RM9.65 billion and is not an additional sum.

At the same time, the federal government is providing a grant of RM900 million to Selangor to help alleviate any short-term water shortage.

These funds relieve the state government of substantial financial burdens. To make a long story short, the people of Selangor - one of the biggest contributors to the national GDP - are finally getting the federal allocations that they are entitled to.

It feels like some would have us think that Selangor is simply throwing money away. As far back as the 1980s, the water industry had generated as much as RM50-80 million a year in profits, when it was run by the state government.

It is clear that privatisation has destroyed the industry, so the state government is now looking to buy back the business and turn it around.

When the reforms that PKR enjoys talking about are instituted, the people of Selangor will once again own a profitable business worth some RM10 billion, which - more importantly - will eliminate leakage and provide efficient water services at a reasonable rate.

Langat 2 treatment plant

With regard to approval, the state exco has been kept appraised of all major developments surrounding the MOU, including the manner in which the Langat 2 treatment plant was to be included as part and parcel of the restructuring exercise.

The major terms of the MOU have been consistent over the last year and have not been subjected to any significant change. No objections have been raised at the state exco level.

Some concerns have been raised in the media that the state government gave up too much in return for too little in this deal.

The water concessionaires have been given until March 10 to accept the offer. The development order for the Langat 2 treatment plant must only be issued within 30 days.

The final version of the MOU has a clause stating that nothing in the agreement can compromise either party's right to take the necessary steps to safeguard its interests in accordance with the federal constitution and existing laws.

My understanding is that the state government is prepared to exercise its right to ensure that both the spirit and the letter of the MOU are followed in full reciprocity, and will not tolerate any imbalance or attempt to subvert the agreement through unethical means.

In a statement, the DAP’s Tony Pua had drawn attention to these exact same facts and the options they afford the state government.

I’m sure others with different interests may take a different view, but I do not foresee the Selangor government being bullied into any lopsided actions.

The MOU also allows representatives of the Selangor government to be part of the decision-making processes involved in building the treatment plant. This way, the Selangor government can help ensure that the construction process is transparent and adheres to sound financial principles.

Beyond partisanship

Perhaps some may be uneasy about the cooperation between the Selangor and federal governments. That I can understand, but we should perhaps also be wary of the logical conclusion of a policy of never-ending distrust across the partisan divide.

A complete lack of cooperation between federal and state governments will lead to a breakdown of the federation itself. If there are absolutely no circumstances whatsoever in which Putrajaya and Shah Alam, for instance, can see eye to eye, then there is no doubt that the final loser will be the rakyat.

The trick, of course, is to make sure that whoever is making the deal is intelligent, experienced, and most importantly, honest enough to negotiate a fair deal.

Selangor Menteri Besar Abdul Khalid Ibrahim seems to be one of few individuals in the current mix who meets these three criteria.

Whatever the myths that people like to propagate about Khalid’s political ineptitude (certainly itself a worthwhile subject for an entire article), I think everyone can agree that he has completely failed to use any of the thousands of opportunities to abuse his position of power for self gain, and that he is one of Malaysia’s sharpest businessmen. This is exactly the field in which he has excelled consistently.

History suggests that Khalid has always been uncompromisingly obsessed about getting a good deal. This principle holds true from the watches he buys in the pasar malam to stubbornly refusing to pay the water concessionaires in Selangor a single sen beyond what they are actually worth.

The game of chicken between Selangor and the water concessionaires has been going on for some six years, and it wasn’t Khalid who blinked first in the end.

Many people treat politics as some sort of great game, with all sorts of moves and counter-moves - a never-ending dance where everyone is unceasingly jockeying for position. The likes of such will always be full of sound and fury, never hesitating to put spin before facts.

Others see government as a responsibility that calls for statesmanship. Such individuals seem to believe that as long as you do your duty, live by sound principles and make sure the facts are on your side, all the rest become secondary.

NATHANIEL TAN has much to learn. He tweets @NatAsasi

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