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Monday, June 2, 2014

Selangor vows to fight Puncak in court


The Selangor water tussle continues to drag on with the state and water concessionaire Puncak Niaga Sdn Bhd (Puncak) now slugging it out in court.

For the state, Puncak's latest court action on May 30, despite already agreeing in principle to the state's takeover offer is a bid to further delay the water restructuring exercise.

“Regrettably, (Puncak)'s actions have delayed the the states efforts to implement the water industry restructuring exercise and the benefits to be derived the by the state and water users.

“This is more apparent when (Puncak) has now agreed in principle to be taken over by the state,” the Menteri Besar's office said in a statement.

The state will also challenge the actions taken by Puncak, adding that public interest should not held ransom by corporate entities.

Puncak had filed for a judicial review against Luas and the Selangor government for not renewing its water extraction license.

It also sought to compel renewal of the licence for another year.

On May 29, the High Court found in favour of Luas and the Selangor government after which Puncak filed an appeal.

On May 30, Puncak obtained a stay order on Luas' decision not to renew the licence, which expired on May 31.

No response from PNSB
Although the licence was not renewed on May 31, Puncak was offered approval to continue extract water pursuant to conditions set by Selangor investment arm Kumpulan Darul Ehsan Bhd (KDEB).

The Selangor government has awarded the licence to extract raw water to KDEB, in a bid to consolidate the fragmented industry under one entity.

Puncak has not responded to KDEB's offer.

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