Govt has option to restructure, take over Air Kelantan, says minister

 

Nik Nazmi Nik Ahmad said restructuring or taking over Air Kelantan would be the last resort as the situation has not reached a level that warrants such intervention. (Bernama pic)

PETALING JAYA: The unity government has not ruled out the possibility of restructuring or taking over Air Kelantan Sdn Bhd if the state-owned entity fails to resolve the water woes faced by the people of Kelantan.

Natural resources, environment, and climate change minister Nik Nazmi Nik Ahmad said such restructuring or taking over of AKSB was possible under the Water Services Industry Act 2006.

However, he said that it would be the last resort since the situation has not reached a level that warrants such intervention, Harian Metro reported.

According to Nik Nazmi, following a recent meeting with the caretaker Kelantan government, the ministry identified several priority projects, including short- and medium-term ones to address the state’s urgent needs.

“Nevertheless, we do not dismiss the option of restructuring AKSB.

“Under the Act, we have several options, and we do not reject the possibility of taking a different approach to resolving the current water issues if we cannot obtain cooperation from AKSB and the state government,” he told a press conference in Pasir Pekan last night.

However, he reiterated that it is the last option, and the matter needs to be thoroughly examined.

“If the situation becomes more critical, we will assess whether restructuring or taking over is necessary. But for now, we have not reached that stage yet,” he said.

In May, Nik Nazmi told AKSB to ensure good governance if it wants to solve the water issues afflicting Kelantan.

He said Kelantan’s water woes will never be resolved unless AKSB addresses its governance issues.

AKSB courted controversy several months ago when the company’s bonus payout came under the spotlight after a copy of a purported circular went viral. According to the circular, AKSB’s directors received a RM10,000 bonus while the staff members received RM200 each.

AKSB, however, defended the bonus payout to its board members and staff, saying it was done in accordance with the company’s financial management procedures and to ease its employees’ burdens ahead of the Hari Raya Aidilfitri festive celebration. - FMT