S'gor water assets: Spanner in the works

Pakatan Rakyat parliamentarians on the Selangor Water Review Panel have blasted the National Water Service Commission (Span) for ‘sabotaging’ the state’s bid to acquire privatised water assets and treatment plants from the concessionaires involved.

On Feb 13, the Selangor government had offered RM5.184 billion to Puncak Niaga Sdn Bhd which owns 70 percent of Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).

The state also reportedly offered RM5.7 billion to take over the complete assets of Puncak Niaga, Syabas, Splash and Konsortium Abass Sdn Bhd (Abass). However, market analysts described the quantum as too low and unreasonable.

Span's chief operating officer Teo Yen Hua then announced that the federal government would negotiate directly with the four concession companies on Feb 18. The statement, made two days before the water concessionaires were due to respond to Selangor, led to rejection of the bid.

“Instead of supporting the state's offer, Span intentionally threw a spanner in the works to sabotage the state's attempt to deliver the lowest possible water tariff to the people,” alleged Tony Pua (right) , the DAP parliamentarian for Petaling Jaya Utara.

At a press conference in the Parliament lobby, he said Span's intervention has “single-handedly destroyed any likelihood of a positive response from the concessionaires to the state government”.

“We would like to call upon the Minister of Energy, Water and Communications to explain the actions of his ministry in sabotaging our efforts.”

He also said the ministry should allow Selangor to lead the discussions and not jeopardise efforts to enable consumers in Selangor, Kuala Lumpur and Putrajaya to pay a lower tariff.

If the federal government acquires these assets and concession at the same or lower price than what Selangor has offered, then “we will not only agree to let the federal government lead the negotiations but will also give the ministry our full support and cooperation”, Pua added.

The other MPs on the review panel are Charles Santiago (DAP-Klang), William Leong (PKR-Selayang) and Dzulkefly Ahmad (PAS-Kuala Selangor).

Situation has turned ‘bizarre’

Dzulkefly pointed out that the Selangor government had started the exercise with good intentions, and that no one had expected the situation to turn this “bizarre”.

“If they (the federal government) pay a higher price, it will (have consequences) for consumers and taxpayer, as it will translate into a higher water tariff... therefore, we advise the government to be prudent and not to be unscrupulous,” he said.

Santiago revealed that there has been talk that the federal government is looking to offer RM9 billion to the concessionaires for the water assets.

“We have done enough consultations and have studied all the documents (long enough) to say that offering RM9 billion at a time of (economic) crisis will constitute a bailout for the concessionaires,” he said.

Santiago also highlighted the National Audit Department's report on apparent irregularities in Syabas which allegedly has not fulfilled requirements stipulated in the concession agreements.

He criticised Span of acting in bad faith, saying that the commission should have not interfered in Selangor's negotiations and that it should play a fair role as a regulator.

He also warned that as the state government still owned 80 percent of the water assets and was a counter-party to the agreements, Selangor will not concede with the federal government's offer if the terms are too high.