Govt to take over if water crisis in Klang Valley continues
THE Federal Government will exercise the Water Services Industry Act 2006 for national security reasons if the disaster shows no signs of abating.
761 APPLICATIONS FROM COMPANIES KEEN ON INVESTING IN KLANG VALLEY HAD TO BE PUT ON HOLD
SPLASH IS RM4.42 BILLION IN THE RED
THE government will exercise its powers under the Water Services Industry Act 2006 (WSIA) for national security reasons if the water crisis in Selangor continues.
Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the Federal Government would study legal methods, which could be taken to resolve the crisis.
“But I hope there will be a willing-buyer, willing-seller concept, so I don’t have to declare an emergency on behalf of the Federal Government.
“If it comes to that, then the act will be used and the water issue will come under the Federal Government’s control. But I do not want that to happen,” he told the Dewan Rakyat.
Ongkili was responding to a supplementary question from independent Bandar Tun Razak member of parliament Tan Sri Abdul Khalid Ibrahim, who questioned the possibility of the Federal Government exercising its powers under WSIA.
WSIA provides the Federal Government the power to take over water management from a state government in times of crisis, before returning it back to the state government once the issues are solved.
Ongkili also questioned the unwillingness of Selangor Menteri Besar Datuk Seri Azmin Ali to follow in the footsteps of the state’s former menteri besar, Khalid, in attempting to solve the crisis.
“Khalid was involved in the water restructuring exercise until the takeover of water concessionaire companies (Puncak Niaga Holdings Bhd, Syarikat Bekalan Air Selangor Sdn Bhd, or Syabas, and Konsortium Abbas Sdn Bhd) were completed, with a loan value of RM1.8 billion from Pengurusan Aset Air Bhd (PAAB).
“Unfortunately, the current menteri besar is afraid to follow in the footsteps of Khalid in naming the price. It is very simple, just name the price. The system has always been the buyer of an asset must name the price. The Federal Government will only facilitate.
“Make the offer to Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and if Splash accepts the offer, I will sit down with both parties and determine how much they need. Unless the offer has been made, we (the Federal Government) have no role in this issue.”
In responding to a question by Budiman Mohd Zohdi (BN-Sungai Besar), Ongkili said PAAB bore a huge financial burden, with an interest rate of RM60 million a year, after it gave a loan of RM1.68 billion to take over the three companies.
This had led Splash to be saddled with Syabas’s RM4.42 billion debt.
Later, in Putrajaya, Ongkili said 761 applications from companies who wanted to do business or invest in the Klang Valley had to be put on hold due to the Selangor water crisis.
He urged the state government not to “play politics”, saying it should prioritise the residents of Selangor and work to solve the problem.
Ongkili said the unwillingness of the state government in naming its price for the takeover had delayed the water restructuring process.
“We are fed up and disappointed because there has been three extensions to the dateline given to finalise the water restructuring agreement. It looks like the Selangor government is not serious about it.
“This has caused hardship for the people of Selangor. It’s not impossible that this is going to drag on. The Selangor government shouldn’t play politics. Prioritise your people. Politics can come later.”