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Monday, August 13, 2012

Quit if water takeover not done by September, MB told



Selangor BN deputy liaison chief Noh Omar today said that Selangor Menteri Besar Abdul Khalid Ibrahim must resign if the state fails in its water takeover bid by September.

NONENoh said this is because Khalid(left), as a successful corporate figure,  is an expert in the matter and should be able to resolve it.

“The MB is a corporate man, so we will wait and see how they handle it," said Noh.

“He has promised (to solve the issue) many times and if he cannot do so by September, he had better resign."
Noh, who is agriculture and agro-based industries minister said that the menteri besar must take responsibility and not continue to issue statements which confuses the people.

azlan"We talk about potable water, he talks about reservoirs. He is twisting the issue," he said.

A special cabinet committee on the Selangor’s water supply had earlier gave the state government the nod to takeover the private water assets, provided the concessionaires agree to a price.

Selangor had on Jan 6 last year offered to take over Puncak Niaga (M) Sdn Bhd, Bekalan Air Selangor Sdn Bhd (Syabas), Abbas Sdn Bhd and Syarikat Air Selangor Sdn Bhd (Splash) for a total of RM9.3 billion. The deal eventually fell flat.

'We researched Langat 2 for seven years'

According to Noh, the boardroom negotiations should not stop the state from allowing the RM8 billion Langat 2 treatment plant, which includes transferring water from Pahang, to proceed.

He said that both the negotiations and construction should move concurrently.

"What's the point of restructuring the industry when Selangor has no water?" he asked.

azlanAsked why Selangor needs to purchase water from Pahang, when Selangor's reservoirs are full, he said that the Langat 2 idea is backed by seven years of research.

"It was after Selangor was hit by a crisis (in the late 1990s). (We are) not like the MB who took seven minutes to decide that Selangor can use underground water," he said.

Noh added that not all underground water is fresh water, and that his experience in solving water shortage in Carey Island found that underground water there is salty.

He also refuted the state government's claim that the Langat 2 will benefit BN cronies, stressing that the federal government is in the process of issuing an open tender.

"What happens is (Pakatan-linked companies) will not enter the tender so later they'll accuse us of giving it to our cronies," he said.

RM100 million to fix pipes

He said that the attorney general's chambers is still studying how to bypass the state government’s objections, to start work on the Langat 2 project.

The plant requires approval by the Kajang municipal council which has thus far been denied.

Noh added that as a responsible government, Selangor should stop "thinking like an opposition" and do what is right for the people.

For example, he said, the federal government, in anticipating a water crisis in the Sepang area spent RM273 million to build the Sungai Labu treatment plant there.

"We were so nice that we gave the plant to Selangor earlier this year to manage without even a formal agreement or contract," he said.

He added that the plant was included in the RM600 million spent by the federal government to mitigate the water shortages.

This also includes giving Syabas RM100 million for capital expenditure so it can fix its pipes and reduce leaks.
Meanwhile, Selangor MB's political secretary Faekah Husin responded by saying that Noh has shown his lack of knowledge in corporate takeovers. 

"This process has to done carefully by experts. Noh has no corporate experience and has no knowledge of the step in or take-over process. Maybe he thinks that it is the same process as taking over a prawn farm," she said.

She added that the Selangor government has followed the Water Services Industry Act 2006 guidelines to a tee, including offering Puncak Niaga RM9.3 billion or "25 percent profit for the concessionaire" but this was rejected as the company sought a profit of 75 percent.

"We advise Noh to focus on agricultural matters and solve the issue involving 30 acres of land which he owns in Kuala Selangor and the prawn farm that sits on it. 

"Let the experts deal with the Selangor water issue," she said in a statement. 
pahang selangor raw water transfer project 180209

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