‘Minister can terminate Syabas’ contract’

Klang MP Charles Santiago says that Energy, Green Technology and Water ministry can use the water disruptions in several Ampang areas as a reason to act against the water concessionaire.

PETALING JAYA: The Energy, Green Technology and Water ministry has the power to terminate Syarikat Bekalan Air Selangor Berhad’s (Syabas) agreement.

Klang MP Charles Santiago said that minister Peter Chin could use the water disruption problem in Ampang to take action against the water concessionaire.

“The concession agreement contains six provisions which allows for the minister to terminate Syabas’ contract on several grounds.

“One of it is if the company doesn’t carry out its work properly for six months, which is what happened at the Wangsa Maju pump,” he said.

Several areas in Ampang were hit with water disruptions after its five pumps at its Wangsa Maju plant tripped. It was also reported that the water problem there may persist till next month.

It was said that the several of the water pumps malfunctioned more than a year ago, but was not repaired by Syabas.

Santiago said that “Chin can also invoke another provision in the agreement to terminate Syabas’ contract for failing to achieve the standard and level of service required.”

The DAP leader added that the Water Services Industries Act 2006 also empowers the minister to act against Syabas on the water disruptions.

However, Santiago said that it was clear that Chin would not act against Syabas, claiming the minister lacked the political will.

“The minister is obviously beholden to Syabas,” he said.

On related matter, Santiago criticised Chin for saying Selangor cannot acquire Syabas without the latter’s nod.

“The concession agreement allows the state government, upon consulting the federal government, to terminate Syabas’ contract with a three months notice period.

“Chin is trying to mislead the public,” he said.

Yesterday, Bernama reported Chin as saying that Selangor has no power to take over Syabas as it would violate the concession agreement.

He said that the state government could only acquire Syabas if the latter agreed to it.

“Let me tell state Menteri Besar Abdul Khalid Ibrahim that the federal government has never stopped them from taking over Syabas because we do not have equity in the company, except for a golden share for the purpose of monitoring,” Chin was reported saying.