Pandan MP Rafizi Ramli (pic) said this was because the Barisan Nasional federal government had said that it will invoke Section 114 of the Water Industry Services Act 2006, which allows them to take over the operations and assets of Selangor's water industry and give it to an administrator of their choice, which in turn can set the price of water.
The federal government is invoking Section 114 in the midst of protracted negotiations with the Selangor government and the four concessionaires that currently manage the supply of treated water for close to eight million residents of Selangor, Kuala Lumpur and Putrajaya.
The negotiations are part of the Pakatan-ruled Selangor government's plans to restructure the water industry, which it claims is being run inefficiently and wastefully by the four concessionaires.
By giving power to set prices and manage the state's water resources to a BN-controlled entity, this could make it far too costly for Pakatan-ruled Selangor to keep giving free water to residents and maintain current water prices for industries.
Rafizi said the use of Section 114 would also derail plans by the Selangor government to restructure the water industry, a plan that was an important part of the Pakatan campaign in Selangor during the 13th general election last year.
By taking over the water industry, Rafizi said, the federal government is being disrespectful of the second term given by Selangor voters to Pakatan to manage Selangor.
“How Selangor managed the water industry and how we want to restructure it was what we defended in our campaign in the last general election.
“Please do not use the power given to you to go against the aspirations of the people of Selangor,” Rafizi said in a press conference at PKR headquarters in Petaling Jaya today.
It was reported previously that the Selangor government has offered RM 9.6 billion in total to the four concessionaires to take over their assets and operations as part of the state’s restructuring of the water industry.
They are Puncak Niaga Sdn Bhd (PNSB), Konsortium Abass Sdn Bhd (Abass), Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Syarikat Bekalan Air Selangor (Syabas).
The Selangor government has claimed that the way the industry is run now, benefits the owners of these companies more than it does Selangor residents.
Throughout the past five years, Selangor has continually clashed with Syabas, for the latter’s demands to raise the price of treated water even as it fails to plug leakages in its distribution network which amounts to 33% of all treated water.
Syabas is in charge of distributing all treated water in Selangor. It is controlled by Puncak Niaga Holdings whose executive chairperson is former Selangor Umno treasurer Tan Sri Rozali Ismail.
In the latest development in the water industry negotiations, the federal government said in a letter dated September 9 last year that it will invoke Section 14 of WSIA.
Rafizi called on the federal government to agree to four commitments if it wants to invoke Section 114 so that the restructuring process is fair and benefits the public.
Firstly, that the federal government allows the industry to be managed by a Selangor subsidiary of the state government’s choosing after taking over the industry’s assets.
“Our fear is that after taking back the assets and operations, the federal government will give them over to Syabas and Puncak Niaga.”
Rafizi also demanded that the federal government not raise water tariffs for the next six years as through Section 114, it would have power over any agreements related to water.
“I am concerned that (with control of water given to the federal government), the people will be punished for voting Pakatan by raising the water tariff, which in the past was rejected by the Selangor government.”
Lastly, Rafizi wants the federal government to ensure that the costing and construction of the Langat 2 water treatment plan is done transparently.
“If the cost of constructing Langat 2 is bloated, then that extra cost is passed on the public through an increase in water tariffs.” TMI
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