Federal Government Should Use Golden Share To Allow Selangor To Takeover Syabas


SHAH ALAM, 13 FEB: As the shareholder of the golden share, the Federal Government has been asked to use its power to allow the Selangor Water Supply Company (Syabas – Syarikat Bekalan Air Selangor) to accept the State Government’s offer price to takeover the water supply management operations in Selangor.

This measure will altogether accelerate the water industry restructuring in the interest of the people.

Chief Minister Tan Sri Abdul Khalid Ibrahim said that if the refuse to do so, the State Government will take the Federal Government to court for violating the Water Services Industry Act 2006 (WSIA 2006).

He stressed that this is not a normal acquisition of a commercial company, rather it involves a tripartite agreement between Syabas, the Federal Government and the State Government whose shareholders are the the people.

“The transaction cannot be anchored solely on profit, instead the welfare of the people should be given priority,” he said during a press conference after chairing the Weekly Exco Meeting.

When commenting on the question related to whether the price offered is higher or lower compared to the previous offer price, Abdul Khalid said that the matter is deemed sensitive and confidential.

He added that the offer documentation will be sent to the concessionaires next week.

This acquisition efforts followed the statement issued by Deputy Prime Minister, Tan Sri Muhyiddin Yassin, who earlier said that the Federal Government has no problem with Selangor’s efforts to restructure the water industry.

Notification of the water management takeover from the concessionaires within 14 days was made through a written letter by the State Government to the Minister of Energy, Green Technology and Water, Datuk Seri Peter Chin Kah Fui.

The 14 day period begins on February 4 and will end next week.

At this point, the operations of treated water is being managed by concessionaires, Puncak Niaga Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) and Konsortium ABASS Sdn Bhd.

On 31 January 2010, the State Government had offered compensations worth RM9.27 billion. However, the amount was rejected by all the involved companies.

In a similar developments, the State Government will provide information to the public regarding the plans and measures which will be taken after the acquisition of the water services in a ‘Water For The People’ Forum which will be held for 10 days starting from 18 February till 28 February throughout the state.

Among the spokespeople involved was – Kuala Selangor Member of Parliament, Dr Dzulkefly Ahmad; Klang MP, Charles Santiago; Lembah Pantai MP, Nurul Izzah Anwar; Petaling Jaya Utara Member of Parliament Tony Pua; PKR Strategy Director, Rafizi Ramli and Political Secretary to Chief Minister , Faekah Husin.

“We will advertise the date and venue of this forum in several major newspapers to enable the people to plan and make early preparations.

“We hope that the people will use this forum as a platform to acquire accurate and the latest information regarding the water issue in Selangor and Klang Valley,” he said.

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