Consumers Association of Subang and Shah Alam (Cassa) today urged the federal government to review the water deal between the Selangor state government and Puncak Niaga Holdings Sdn Bhd.

If the review is not done within 14 days, Cassa president Dr Jacob George said the association will be forced to take legal action.

The agreement - entered by Puncak Niaga Holdings Bhd (PNHB), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and the Selangor state government - on the operation and maintenance of water treatment plan in Sungai Sireh was inked by state secretary Ramli Mahmud on March 7, the eve of polling day.

The next day, the state government fell into the hands of PKR, DAP and PAS. Former menteri besar Dr Mohd Khir Toyo subsequently denied any knowledge about the agreement.

dr jacob george 270308 cassa statement on water deal "We have received many phone calls from Selangor consumers regarding this issue. This deal which was signed before the election has raised the issue of legality. We feel that there's something amiss in this deal," George told Malaysiakini today.

Cassa is supporting the call by newly minted Selangor Menteri Besar Khalid Ibrahim to review the concession agreement but the review must be done for public interest.

Khalid has also dismissed the claims by Energy, Water and Telecommunications Minister Shaziman Abu Mansor that the agreement is still valid.

Is it a fair deal?

Meanwhile, George also questioned whether the deal is fair to the people of Selangor. "The question is are there any profiteering element in the agreement? If it's there, isn't it justifiable for a review?"

He added that the public is already burdened with the rise in living cost.

George said although the legal suit will be seen as washing dirty linen in public, it's important because water is not a business but a basic right for all.

According to him, the legal suit will be people-funded and this will show that the public is supporting this cause.

Cassa is also initiating a meeting with the MB to discuss this issue in order to work out a win-win situation.

"We are not trying to drag the issue. We want to move forward to make sure there are no more issues on the table. The earlier the review, the better," he said.

George also urged the federal government to review all other previous agreements where there is cause for concern.

Asked about the proposal for ‘free water’, the Cassa president said the association supported waiving charges for the first 20 cubic metres of water used by households.

However, he said ‘free water’ must be given only to the needy and poor in order to avoid wastage.

Water supply was privatised on Jan 1, 2005, with Syabas being responsible for distribution in Selangor, Kuala Lumpur and Putrajaya.

Syabas is 70 percent owned by Puncak Niaga, with the balance owned by the Selangor government.