Minister says no buyout amount fixed for Splash takeover yet

Water, Land and Natural Resources Minister Xavier Jayakumar has denied a media report that the federal government has agreed to fork out up to RM1.9 billion to finance the takeover of private water supply concessionaire Syarikat Pengeluar Air Selangor Holdings (Splash) with the Selangor government.

Singapore's The Straits Times had reported today that the joint-funding deal was struck last week and could see the federal government fork out close to the sum, while the state government would give less than half of that.

Xavier, however, told reporters that he had only stated that the transfer would only be completed by Aug 10, but did not specify any amount to be paid.

"I did not mention any amount or any quantum, because the quantum is completely a case of willing seller, willing buyer. So it is between (state-owned) Air Selangor and Splash.

"When they are comfortable with what they have (agreed on), they will come to us (federal government) and then we will facilitate the transfer," he told reporters this morning.

The Selangor government has been in talks to take over Splash, a 40 percent subsidiary of Gamuda Bhd, as part of its water restructuring exercise but that has yet to materialise.

When questioned again on the quantum for the joint funding, the minister stated that negotiations between the concerned parties were ongoing.

He said: "Negotiations are ongoing because I have given them a deadline and I like them to keep to the deadline. By Aug 10, I hope we will be able to at least get it (the transfer) done."

In this morning's report, an "official source" told The Straits Times that in the deal struck between the two governments, both run by Pakatan Harapan, the federal government is set to pay RM1.9 billion for Splash.

"This, out of a total consideration of RM2.5 billion to RM 2.7 billion, (while) Selangor will pay Splash between RM600 million and RM800 million," the report read.

The source also stated that discussions are ongoing over how the assets are allocated between the two governments.

The source had said: "The minister agreed to take things step by step after working out the financials."

The move, it said, could see an end to an almost decade-long spate of water supply disruptions in the state.

[More to follow]

-Mkini