Clause 32 Concession Agreement – Selangor water

by Dr R@28

• According to DPM Muhyuddin, he is following the Selangor water development issue closely. He said the SSG cannot take over the management of water concessionaire Syabas without the consent of the Federal Government. He said that there must be grounds for the takeover and the state government must propose how it intended to manage the water supply. Quote, “This is provided for under the concession agreement. It (the takeover) is not a simple matter. It cannot be decided on a whim”.

• The CA remains a secret matter and we can take it at face value that FG approval is required for the takeover. The issue on hand is that whether there is adequate justification and capability on the part of SSG to take over the operations. On the issue of justification, I believe there is enough justification. The biggest justification is the admission of Syabas management that they are facing financial constraints and while the business was under their watch, they are not able to provide adequate water to Selangor and the FT. These admissions can be sighted in many publicly available publications and official statements.

• Does the SSG has the ability to manage Syabas. I believe the team announced by the MB has considerable water management experience. The technical staffs are retained. Only key personnel are being replaced. Furthermore SSG has RM1.8 bill in their coffers that Syabas do not have. The SSG is also in a better position to raise funds if there is a need be. I believe there are no basis whatsoever for FG to deny SSG to take over the operations.

• If the FG is sincere about the interest of people in Selangor and not TSR interest, they should allow SSG to take over. In fact it is an opportunity for SSG to prove themselves. If SSG failed to improve the situation on ground, BN can go to street and create the necessary political awareness to kick PR from SSG. Isn’t that what BN wanted in the first place. If SSG failed BN can celebrate around town. They will win Selangor hands down. Therefore my advice to MY is to let SSG to take over. Don’t look for justification of to block the take over. Make it happen in the best interest of the people.