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Thursday, July 29, 2010

Syabas may sue Selangor government

Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) is contemplating legal action against the Selangor government to claim compensation for delaying the water tariff adjustments.

Its chief operating officer Datuk Lee Miang Koi said until the end of this year, the expected compensation to be paid to Syabas was RM1 billion.

Syabas had sent a claim for the compensation but until now, it had yet to get the state government's response, he said at the National Intellectual Discourse hosted by the Special Affairs Department (Jasa) at the Tunku Abdul Rahman Memorial here on Wednesday night, July 28.

"The water tariff had to be adjusted to enable Syabas to earn revenue to repay loans it had taken to improve the quality of water services. By delaying the adjustments and freezing the Capex programme, the standard of water services will decline.

"This year, payments to treatment plant operators had to be reduced to 45% compared to 60% last year. Syabas is facing legal actions from Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Abass for not paying them in full," he added.

Meanwhile, Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said foreign registered vehicles were required to buy unsubsidised RON97 petrol.

"The more they buy RON97, more revenue will be generated by the government, The ruling was made in the interest of the people," he added. — Bernama

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