Offer to all water concessionaires fair

KUALA LUMPUR, 11 Aug: The offer to acquire the water asset by the Selangor Government to all concessionaires was done fairly and justly, uniform in the evaluation method, not biased or prejudiced, said the Chief Minister’s Officer for Special Economic and Financial Duties, Azrul Azwar Ahmad Tajudin.

The statement thus denied allegations by certain quarters that the offer to Syarikat Pengeluar Air Sungai Selangor (SPLASH) was modified to be more profitable to Puncak Niaga and Syarikat Bekalan Air Selangor (SYABAS).

While describing the allegations as baseless, he said that every offer by Kumpulan Darul Ehsan Berhad (KDEB) to all concessionaires since February last year remains consistent and has not changed.


“For each of KDEB’s offers dates 20 February 2013, 21 November 2013 and 26 February this year, almost all teams and conditions remain unchanged and is consistent, including the entire sum of RM9.65 billion, remains unchanged.

“The equity compensation which is combined for Puncak Niaga and SYABAS remains at RM1.55 billion, while SPLASH remains unchanged at RM251 million.

“SPLASH has agreed in principle to accept the offer on 20 February 2013, but it was strange that when the same offer was made on 26 February this year, they suddenly rejected it despite the terms and conditions being the same,” he said.

He was speaking at the Selangor Crisis Forum: Khalid Ibrahim betrays Pakatan? at the Kuala Lumpur and Selangor Chinese Assembly Hall recently.

The forum features panellists from the Selangor Chief Minister’s Office, Communications Executive Shazni Munir Mohd Ithnin; the Presidents of Persatuan Anak Selangor Menyokong Menteri Besar (PASMEB), Mazli Saring and former communications officer, Nathaniel Tan.


Azrul said that the 12 percent annual equity return used by the State Government is also in accordance with the water privatisation agreement clauses set and does not conflict with the conventional method to estimate the fair value of compensation in the company transition.

He said that the method had to be used as it is stipulated in the agreement to maintain the credibility of any valid contract in the eyes of the law.

“It is not practical to use methods that are not uniform and it is not fair if SPLASH is given a privilege while the three other concessionaires accepted the offer based on the equity returns of 12 percent.

“The concessionaire can take this matter for international arbitration to solve it but the cost of acquisition will not exceed RM9.65 billion because the method of resolving through the 12 percent equity return is far more lucrative than international standards at a rate of 8 percent,” he said.


Leave a Reply

Your email address will not be published.