Selangor says water deal fair to state and people

The Selangor government has moved to assure the people of the state that the water deal it had inked with Putrajaya safeguarded their interest as questions continue to be raised about the MoU.

Menteri Besar (Selangor) Incorporated (MBI) chief executive Faekah Husin (pic) reiterated that the Memorandum of Understanding (MoU) would not have been signed without safeguarding the rakyat's interest.

Faekah expressed confidence that the MoU would enable the expediting of Selangor's water industry in line with the Water Services Industry Act 2006.

"This is an essential process to ensure world-class water services at reasonable tariffs," she said in a statement today.

"Moreover, non-revenue water which has shot up by 33% has to be reduced," Faekah said, adding that the free first 20 cubic metre water programme would continue in Selangor.

The MoU that was signed on Wednesday allowed the Pakatan Rakyat state government to reverse decades of privatisation of the Selangor water industry.

The Federal government will give the state power to take over the management of treatment plants and distribution pipes from the four private companies.

Selangor will offer RM9.65 billion to the shareholders of the four companies to take over their shares and debts.

The concessionaires are Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga Sdn Bhd (PNSB), Konsortium Abbas Sdn Bhd (Abbas) and Syarikat Pengeluar Air Selangor Holdings Bhd (Splash).

In return, the state government will approve the development of the Langat 2 treatment plant which will process raw water piped in from Pahang.

Faekah emphasised that the Selangor state government had always been transparent in its takeover bid, referring to the RM9.65 billion offer for the four concessionaires.

"Should be water concessionaires feel they are worth more than the offered price, they are welcome to resort to an international arbitration," Faekah said.

Faekah said Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim had also revealed facts and details in various press statements, interviews and briefings.

"The briefings have been attended by state officials, elected representatives including state assemblymen and members of parliament."

"It is not a secret that Selangor will allow the development of the Langat 2 treatment plant with specified terms and conditions," Faekah said.

Faekah said the Selangor government will receive RM2 billion from Pengurusan Aset Air Berhad (PAAB) to assist with the equity takeover.

Additionally, Putrajaya has allocated RM900 million for Selangor to carry out mitigation plans to ensure an undisrupted treated water supply in Selangor, Kuala Lumpur and Putrajaya.

"There is a clause in the MoU which guarantees the right of any party to take action deemed appropriate and necessary should their interests be in jeopardy," Faekah revealed.

"This clause clearly precludes any element of prejudice, bias or injustice in the MoU," she added.

"Although the signing ceremony of the MoU was carried out in an expeditious manner, but all the terms and conditions were carefully and meticulously examined."

"Everything was thoroughly examined while carefully considering the balance of probablities," Faekah said.

Faekah assured the public that MBI would continue to monitor the water restructuring exercise closely to ensure that the state's interest and its rakyat was protected at all times.

Faekah’s assurance comes as anti-graft watchdog Centre to Combat Corruption and Cronyism (C4) said the water deal had only raised more questions.

In a statement, C4 co-founder Cynthia Gabriel called on the state government to make the MoU public.

"The MoU was supposed to have resolved more than five years of intense haggling, failed negotiations and ruptured talks," she said.

"Instead, it had brought about more doubts and questions. Why? The MoU is an official secret and the details have not been made available for public consumption,’ she said urging Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim to make it public quickly.

In a separate development, PKR de facto leader Datuk Seri Anwar Ibrahim today gave his full support to the signing of the MoU between Selangor and Putrajaya.

He said the MoU was in the best interest of the rakyat although he added there was a need to study the document in detail.

"My room for comment on the issue is limited because I have not had the opportunity to see the MoU," he said.