KISS YOUR FREE WATER GOODBYE?
Former MB Khalid says price may be 10 times more than what his govt offered
SELANGOR residents may not enjoy free water any more following the state government’s offer to take over Syarikat Pengeluar Air Selangor for RM2.55 billion, says former menteri besar Tan Sri Khalid Ibrahim. Consumers may also end up paying a higher tariff.
SELANGOR residents may have to kiss their free water supply goodbye following the state government’s impending RM2.55 billion takeover of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
This was the warning issued by former menteri besar Tan Sri Abdul Khalid Ibrahim, who said the takeover could herald grave consequences for people in the state.
The former PKR stalwart claimed that the RM2.55 billion deal could end up with the state paying 10 times more than what the state government under his administration had offered in 2013.
He believed that the situation could see the Selangor government reviewing the free water for households programme, or even stopping it altogether.
The free water initiative was started by the Pakatan Harapan (then Pakatan Rakyat) government in 2008 when it assumed control of the Selangor administration.
Khalid said he was not surprised by the announcement on the takeover.
“That was among the reasons why I was asked to resign as Selangor menteri besar in 2014. Some PKR leaders had wanted a higher offer to be made for Splash.
“This places the heavy burden and responsibility of repayment on the people, with a high tariff being imposed.
“That was why I rejected it, as I had the interests of the people in mind,” he said on Facebook yesterday.
He said the Selangor government’s strategy would open up an opportunity for Splash shareholders to reap high profits and greater compensation.
“I hope the people of Selangor will remain strong in the face of these massive changes.”
Khalid has been a vocal critic of paying a high sum for the state’s water concessionaires. He had constantly criticised his successor, Datuk Seri Azmin Ali, who is now economic affairs minister, over the latter’s alleged willingness to pay a reported RM2.7 billion for Splash’s equity.
Khalid had previously labelled the offer as outlandish, saying it was 10 times more than his administration’s offer of RM250.6 million.
On Nov 5, 2016, Khalid denied Azmin’s claims that the Selangor government had, between 2008 and 2014, made an offer of RM2.975 billion.
Yesterday, the Selangor government announced that it had tabled an offer of RM2.55 billion to take over Splash to end the 10-year deadlock over the state’s water saga.
Selangor Menteri Besar Amirudin Shari said Splash agreed in principle to the offer, but it was still subject to approval from its shareholders, among others.
He said the takeover did not involve any allocations from state funds.
The takeover, he said, would resolve the outstanding debts incurred by Syabas, a subsidiary of Air Selangor, from Splash for the purchase of treated water. The debt stood at RM4.7 billion as at June 30.
Amirudin said the Selangor government would, in the future, set the water tariff at a rate that would not burden the people. Current rates would remain for now.
The acquisition of Splash by Air Selangor is being undertaken as part of the consolidation and restructuring of the water industry in Selangor, Kuala Lumpur and Putrajaya by the state and federal governments.
The exercise was done to increase water reserve margins and reduce non-revenue water, as well as achieve uninterrupted water supply in the Klang Valley and nationwide.