RAKYAT, BUKAN SYARIKAT KONSESI, AKAN UNTUNG JIKA KERAJAAN SELANGOR AMBIL ALIH PENGURUSAN AIR
SHAH ALAM: Matlamat utama hasrat Kerajaan Negeri Selangor dalam mengambilalih pengurusan industri air negeri adalah amat jelas iaitu memberi perkhidmatan yang lebih efisyen dengan harga yang rendah disamping meneruskan perkhidmatan air percuma sebanyak 20 meter padu pertama.
Pendirian ini telah dinyatakan dengan jelas oleh Dato Menteri Besar Selangor yang juga telah menerangkan berulang kali bahawa Kerajaan Negeri bersedia mengambil-alih aset air dari semua empat syarikat konsesi air dengan harga yang munasabah dan menguntung kedua-dua pihak iaitu rakyat dan syarikat-syarikat yang berkenaan.
Kenyataan Ahli Dewan Undangan Negeri (ADUN) Batang Kali, Mohd Isa Abu Kasim yang menuduh Kerajaan Negeri Selangor hanya ingin mengaut keuntungan tanpa menghiraukan masa depan rakyat jelas amat dangkal dan menunjukkan pemikiran yang cetek.
Jika ADUN Batang Kali mengikuti penerangan isu penstrukturan semula air dengan lebih teliti, beliau akan tahu bahawa jika Kerajaan Negeri mengurus perkhidmatan air di Selangor, tarif air akan dapat diturunkan sebanyak 10% dalam tahun 2009 dan 20% pada tahun 2011 seterusnya sebanyak 25% pada tahun 2013.
Jika adapun pihak yang mengaut keuntungan, ianya adalah rakyat dan bukan individu-individu atau syarikat swasta seperti mana yang berlaku sekarang.
Namun yang jelas sekarang, pendapat pemimpin UMNO dalam isu air ini amat konsisten iaitu menyebelahi syarikat konsesi. Baru-baru ini Perdana Menteri Datuk Seri Najib Tun Razak membuat kenyataan bahawa tawaran harga kepada syarikat konsesi ini tidak munasabah.
Pendirian Najib dalam isu ini juga tidak menggambarkan konsep “1 Malaysia” yang dikatakan sebagai satu konsep menyeru kepada rakyat bersatu membangun Malaysia. Mengapa Najib tidak bersatu bersama Kerajaan Negeri dalam memperjuangkan usaha supaya rakyat mendapat keuntungan dari perkhidmatan air?
Kami menyeru kepada Perdana Menteri dan semua pemimpin UMNO untuk mengenepikan kepentingan politik dan bersama pihak Kerajaan Negeri dalam isu ini demi kebajikan penduduk Negeri Selangor sejajar dengan laungannya untuk konsep “1 Malaysia”. Jika tidak, konsep “1 Malaysia” ini jelas hanya sekadar retorik semata-mata bagimeraih sokonganrakyat kembali kepada UMNO dan Barisan Nasional.
NIK NAZMI NIK AHMAD
SETIAUSAHA POLITIK KEPADA DATO’ MENTERI BESAR SELANGOR
SHAH ALAM: Kerajaan Negeri Selangor kesal terhadap keputusan Kerajaan Persekutuan yang membenarkan Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) untuk terus beroperasi sebagai konsesi dan yang secara langsung menyetujui permintaan Syabas hendak menaikkan tarif air.
Keputusan tersebut bukan sahaja mendatangkan kesan terhadap pentadbiran negeri Selangor, Kuala Lumpur dan Putrajaya, sebaliknya terhadap pembayar cukai seluruhnya.
Malahan, Kerajaan Selangor berpendapat Syabas tidak layak diberikan lesen kerana ia gagal memperlihatkan prestasi yang memberangsangkan sebagaimana dikehendaki oleh Akta Perkhidmatan Industri Air 2006.
Sehingga kini, perkhidmatan Syabas yang tertakluk pada Perjanjian Konsesi (Concession Agreement - CA) dilihat sangat tidak memuaskan dan gagal mencapai tanda aras atau parameter yang ditetapkan CA.
Tambahan pula Syabas didapati melanggar syarat-syarat dalam CA. Perkara ini sudahpun dibawa ke pengetahuan Menteri Tenaga, Air dan Telekomunikasi, di samping permohonan kita untuk membatalkan Perjanjian Konsesi (CA) dengan Syabas.
Walau bagaimanapun, Menteri berkenaan MASIH eggan mengambil tindakan terhadap Syabas, sebaliknya telah menyatakan hasrat untuk memberikan lesen kepada Syabas untuk meneruskan operasinya dengan alasan hak tersebut di luar kuasa Kerajaan Selangor.
Keputusan ini bukan sahaja bertentangan dengan hasrat Kerajaan Persekutuan untuk menyusun semula perkhidmatan air di Malaysia tetapi juga menjejaskan kepentingan pengguna seluruhnya.
Sebenarnya keputusan untuk menaikkan tarif air tidak dapat dipertahankan. Kerajaan Negeri Selangor percaya beberapa prasyarat bagi kenaikan tarif yang ditetapkan dalam Perjanjian Konsesi belum mampu dipenuhi oleh Syabas. Paling mendukacitakan, beberapa kepincangan ditemui semasa audit dilakukan, dan hal ini menguatkan lagi alasan betapa tidak layaknya Syabas memikul tanggungjawab meneruskan operasi air.
Justeru itu, berdasarkan pendirian keras yang diperlihatkan oleh Kerajaan Persekutuan dan kesan buruk yang bakal menyusul daripada tindakan tersebut, terutamanya terhadap kepentingan awam, maka Kerajaan Negeri Selangor tiada pilihan lain, sebaliknya mengambil tindakan undang-undang untuk mencari jalan penyelesaian.
Kerajaan Pakatan Rakyat berharap rakyat akan terus memberi sokongan padu kepada Kerajaan Negeri dalam penstrukturan semula perkhidmatan air diSelangor. Untuk memahami isu-isu terbabit dalam pengurusan air di Selangor, orang ramai bolehlah melayari laman web rasmi berhubung isu ini di www.airuntukrakyat.com.
SELANGOR WILL TAKE LEGAL ACTION FIGHT WATER TARIFF HIKE
The Selangor Government regrets the decisions by the Federal Government to allow Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to continue operating as a concessionaire and to accede to the request by Syabas to increase water tariffs.
These decisions not only affect consumers in Selangor, Kuala Lumpur and Putrajaya who face higher charges, but, also on taxpayers as a whole. It is the view of the Selangor Government that in light of its performance, Syabas does not deserve a license under the Water Services Industry Act 2006.
The services Syabas has provided under the Concession Agreement (CA) thus far have been highly unsatisfactory and not within the expected parameters of the CA. Further, Syabas has breached the CA in ways that cannot be ignored. These matters have been brought to the attention of the Minister of Energy, Telecommunication and Water, together with a request that the CA be terminated.
However, the Minister has yet to take decisive action against Syabas and has instead indicated to issue a license to Syabas to continue its operation for reasons that are beyond the comprehension of the Selangor Government. This decision not only goes against the declared intention of the Federal Government to restructure water services in Malaysia but also the public interest.
The decision to increase water tariffs is not a tenable one. The Selangor Government believes that the necessary pre-requisites for a tariff increase under the CA have not been fulfilled. Material deficiencies were found during the last audit, the cumulative effect of which undermines the validity of the request by Syabas.
In light of the unyielding position taken by the Federal Government and the grave consequences that flow from its decisions in this regard, particularly the impact on the public interest, the Selangor Government has no alternative but to seek legal recourse.
The state hopes that the people will continue to support the Selangor Government in the restructuring of the state’s water industry. For better understanding of the issues, the public can visit www.airuntukrakyat .com for details.
Soalan-Soalan Lazim Mengenai Penstrukturan Semula Industri Air di Selangor
1.Apakah tujuan Kerajaan Negeri Selangor dalam usaha penyusunan semula industri air di Selangor?
·Kerajaan Negeri Selangor berhasrat menyusun semula perkhidmatan industri air di Selangor secara bersepadu (holistik), bagi memastikan empat syarikat konsesi yang sedia ada digabung menjadi sebuah badan yang diberi lesen mengoperasi untuk mengurus perawatan dan penyaluran air bersih ke seluruh Selangor.
·Syarikat tunggal air ini beroperasi dalam kawalan Kerajaan Negeri Selangor.
·Kerajaan Negeri Selangor berhasrat meningkatkan kecekapan industri air, mengurangkan tarif sehingga 24 peratus dan mengekalkan dasar pemberian air percuma sehingga 20 meter padu.
2.Bagaimanakah usaha ini dapat disesuaikan dengan rancangan Kerajaan Persekutuan?
·Akta Perkhidmatan Industri Air (WSIA) 2006 yang diluluskan Parlimen bertujuan memiliknegarakan kesemua aset air di negeri-negeri di Semenanjung.
·Rancangan ini kemudian menyerahkan semula aset yang berkaitan air kepada Kerajaan Persekutuan melalui agensi yang dilantik - Pengurusan Aset Air Berhad (PAAB).
·Kerajaan Negeri Selangor memiliki 70 peratus aset air negeri, manakala baki 30 peratus dimiliki syarikat konsesi air persendirian.
·Jika pengambilalihan ini berjaya, maka semua aset air Selangor menjadi milik Kerajaan Persekutuan, namun lesen untuk beroperasi diberikan kepada pihak lain.
3.Apakah cadangan Kerajaan Negeri Selangor dalam usaha penyusunan semula industri air secara bersepadu?
·Kerajaan Negeri Selangor mengemukakan cadangan untuk mengambil alih kesemua aset syarikat-syarikat konsesi tersebut, dan membayar ekuiti pelaburan mereka pada kadar 12 peratus setahun. Jumlah ini dijangka menjadi RM5.7 bilion (iaitu nilai aset berjumlah RM4.6 bilion, nilai ekuiti bernilai RM1.1 bilion).
·Jika cadangan ini diterima, barulah Kerajaan Negeri Selangor memindahkan RM4.6 bilion nilai aset syarikat-syarikat konsesi, dan RM9.7 bilion nilai aset air milik Kerajaan Negeri kepada PAAB.
·Hasil daripada jualan aset berkaitan air itu nanti, Kerajaan Negeri Selangor dijangka menerima RM14.3 bilion dalam bentuk tunai dan bon daripada Kerajaan Persekutuan.
·Kaedah khusus untuk mencapai tujuan ini hanyalah menerusi penubuhan badan korporat yang bertanggungjawab untuk menggabungkan kesemua empat syarikat konsesi (“special-purpose vehicle”). Kerajaan Negeri memiliki saham dalam syarikat-syarikat tersebut dan dengan yang demikian mempunyai hak untuk membuat keputusan dalam urusan penggabungan tersebut.
·“Special-Purpose Vehicle” itu meliputi pemberian lesen untuk mengoperasi industri air di Selangor, dan memajakkan aset air yang dimiliki oleh PAAB untuk beroperasi di peringkat negeri.
4.Mengapakah perlunya penyusunan semula ini dilakukan dengan segera?
·Memang sangat perlu bagi kita untuk mengerakan penyusunan semula kerana menurut perjanjian konsesi, Syabas dijangka menaikkan tarif air sehingga 31 peratus.
·Walaupun, jika setelah Kerajaan Persekutuan memberikan semula lesen mengoperasi kepada Syabas (yang dibantah oleh Kerajaan Negeri Selangor), ia tidak menaikkan tarif air, namun, perbezaan kadar tarif terpaksa ditanggunggung oleh Kerajaan Negeri yang pastinya tarif itu dibayar oleh rakyat Selangor juga.
5.Apakah yang dilakukan oleh Kerajaan Persekutuan untuk mensabotaj rancangan Kerajaan Negeri Selangor?
·Dua hari sebelum tawaran Kerajaan Negeri Selangor kepada syarikat-syarikat konsesi berakhir, Kerajaan Persekutuan melalui badan penyelarasnya Suruhanjaya Pengurusan Air Negara (SPAN), ada mengumumkan yang Kerajaan Persekutuan hendak menggagalkan usaha Kerajaan Negeri untuk mengadakan rundingan terus dengan syarikat-syarikat konsesi.
·Tawaran-tawaran Kerajaan Persekutuan kepada syarikat-syarikat konsesi tersebut dengan jelas merupakan sabotaj oleh sebab mereka memberi tawaran harga yang tinggi kepada syarikat-syarikat tersebut, berbanding dengan harga yang ditawarkan oleh Kerajaan Negeri.
·Alasan yang digunakan oleh Kerajaan Persekutuan kerana Kerajaan Negeri Selangor dengan sengaja melewat-lewatkan proses rundingan, walhal yang sebenarnya Kerajaan Negeri sentiasa memberikan maklumat kepada Kerajaan Persekutuan berhubung dengan setiap perkembangan yang berlaku.
·Sebagaimana yang dijangka, semua empat syarikat konsesi sudah menolak tawaran daripada Kerajaan Negeri Selangor
6.Mengapakah tawaran Kerajaan Persekutuan kepada syarikat-syarikat konsesi dianggap sebagai penyelamat atau “Bail-Out” Barisan Nasional terhadap kronin-kroninya?
·Kerajaan Persekutuan, dengan cara membayar wang kepada syarikat-syarikat konsesi dalam jumlah yang meragukan banyaknya, dengan jelas merupakan bayaran penyelamat kepada syarikat-syarikat konsesi yang sedang menanggung hutang yang sangat banyak.
·Selepas WSIA 2006 ditandatangani, akaun syarikat konsesi didapati membayar dividen yang banyak kepada pemegang saham. Jumlah dividen yang besar ini amat tidak berpatutan keranma syarikat-syarikat berkenaan sedang menanggung hutang yang besar.
·Ketua Pegawai Eksekutif –CEO– Puncak Niaga ternyata sudah dibayar gaji sebanyak RM5.1 juta sepanjang tahun 2007, manakala elaun pengurusan bulanannya sebanyak RM700,000. Sekiranya syarikat tersebut sedang menanggung hutang yang banyak, mengapakah masih membayar gaji yang sangat tinggi kepada CEO?
·Kerajaan Persekutuan masih terus menolong syarikat-syarikat kroni Barisan Nasional. Syabas didapati menaja Perhimpunan Agung Tahunan UMNO, termasuk tahun 2009.
7.Mengapakah Kerajaan Negeri Selangor mesti dilibatkan dalam proses penyusunan semula industri air?
·Fasal 191(4) dan Fasal 191(7) Akta Perkhidmatan Industri Air (WSIA) 2006 mengkehendaki Kerajaan Negeri dilibatkan dalam proses rundingan, sebagai imbalan balik terhadap perjanjian konsesi yang ditandatangani dengan syarikat-syarikat konsesi.
·Dalam keputusan mesyuarat Kabinet pada 16 Januari 2008, dipersetujui supaya Kerajaan Negeri, menerusi anak syarikat Kerajaan Negeri Kuampulan Darul Eksan Berhad (KDEB), mengetuai rundingan bagi proses penyusunan semula industri air.
·Keputusan Kabinet itu belum dibantah, dan belum ada keputusan Kabinet yang mempertikaikannya. Justeru itu, Kerajaan Negeri masih perlu dilibatkan. Pengecualian daripada hal ini dianggap menyalahi undang-undang.
·Daripada segi undang-undang, Kerajaan Negeri mempunyai hak penuh terhadap air mentahnya. Usaha untuk meminggirkan Kerajaan Negeri dilihat tidak bijak dan bukan idea yang praktikal kerana mahu tidak mahu Kerajaan Negeri mesti dilibatkan sebagai penyelesaian terhadap industri air.
·Lebih daripada 70% aset air di Selangor masih dimiliki oleh Kerajaan Negeri Selangor, termasuk yang diuruskan oleh syarikat-syarikat konsesi sekarang.
·Dalam perjanjian konsesi, semua aset yang berkaitan air mesti dipindahkan semula kepada Kerajaan Negeri Selangor. Jika syarikat-syarikat memindahkan aset ini kepada Kerajaan Persekutuan, ia dianggap melanggar perjanjian kerana tidak menyerahkan semula aset kepada Kerajaan Negeri.
8.Apakah yang diminta oleh Kerajaan Negeri Selangor daripada Kerajaan Persekutuan?
·Kerajaan Negeri Selangor meminta Kerajaan Persekutuan supaya menamatkan perjanjian konsesi dengan Syabas, kerana Syabas tidak diurus dengan betul, dilihat terlibat dalam amalan rasuah, melanggar perjanjian dan tidak cekap dalam hal melaksanakan perkhidmatan kepada rakyat Selanmgor, Kuala Lumpur dan Putrajaya.
·Kerajaan Negeri Selangor menuntut Kerajaan Persekutuan supaya melaksanakan kuasanya menerusi WSIA 2006.
·Kerajaan Negeri Selangor menuntut supaya ia meneruskan usaha penyusunan semula dengan syarikat-syarikat konsesi, menurut keputusan asal Kabinet dan sejajar dengan semangat dalam WSIA 2006.
·Kerajaan Negeri Selangor menuntut supaya lesen mengoperasi tidak diberikan semula kepada Syabas tetapi diberikan kepada Kerajaan Negeri Selangor.
· Kerajaan Negeri Selangor menuntut supaya Kerajaan Persekutuan melakukan tindakan yang sewajarnya. Jikalau Kerajaan Persekutuan dan Kerajaan Negeri Selangor boleh bekerjasama, maka isu yang berlarutan ini dapat diselesaikan dengan segera tanpa menjadi isu yang boleh dipolitikkan.
9.Apakah pilihan yang ada di pihak Kerajaan Negeri selangor sekiranya situasi ini menemui jalan buntu?
Kerajaan Negeri sudahpun berbincang dengan Kementerian Tenaga, Air dan Komunikasi, dan situasinya di sini nampaknya menemui jalan buntu.
·Kerajaan Negeri Selangor sudahpun mengemukakan cadangan untuk pertimbangan Menteri berkenaan, tentang rancangan penyusunan semula industri air Negeri dan sedang menunggu maklum balas daripada beliau.
·Sekiranya usaha ini masih gagal, maka Kerajaan Negeri Selangor tiada pilihan lain kecuali mengambil tindakan undang-undang terhadap Kerajaan Persekutuan.
On 10 July 2006, the Water Services Industry Act (WSIA) and later the Suruhanjaya Perkhidmatan Air Negara Act (SPAN) 2006, were established to govern and regulate the fragmented water industry in Malaysia. In relation thereto, every water treatment operator and distributor fall under the purview of this newly incorporated Acts.
SPAN acts as a regulatory body to oversee and supervise water-supply services and to enforce the laws on water supply and sewerage services for related matters. The key powers of SPAN include issuing license, advising minister on a fair and efficient mechanism for the determination of tariffs and implementing tariffs through appropriate mechanisms.
The WSIA 2006 effectively transfers the right of supply and management of water from the respective states to the Federal Government via the setting-up of a water management company model or PAAB (Perkhidmatan Aset Air Berhad). Following that, the Federal Government will own all water related assets (i.e. sewerage facilities, water treatment plants and dams). All water assets in Peninsular Malaysia must be transferred to PAAB by the end of 2009, estimated to involve a total acquisition cost of RM15bn.
The water assets will then be leased to private companies and state entities which would be issued licenses to operate them. PAAB would be responsible to source funds for the private or state entities presumably at lower costs for capital expenditures.
With these Acts, federalization of the water industries was set to be put in place. It may be presumptuous, but is this an open admission of the failure of privatization of the water industry? Another statistic to a growing lists of failed privatization projects.
Be that as it may, it is said that PAAB has been hitting milestones over the past few months. It recently succeeded in taking over the physical water assets and liabilities of the states of Melaka and Negeri Sembilan for a total sum of RM2.1bn.
With two down, PAAB has nine to go. Selangor state is next. But the going looks tough. Why? Is it because it’s a PR-led state government or is there more than meets the eyes?
The water privatisation in Selangor was started in the early 1996 by the Mahathir administration. Huge lucrative concessions were granted to politically-well-connected private companies with neither the expertise nor nor the necessary equity funds to operate these businesses on a truly private basis.
Consequently, the 1.5 million residents of Selangor, Kuala Lumpur and Putrajaya were forced to pay high prices for the water supply, unreasonable penalties as well as often poor service quality. Huge grants and loans were handed out for capital expenditures. A whooping net debt of RM6.4 billions is currently sustained by the 4 concessionaires with Syabas at RM 2.9 bn, Puncak Niaga at RM1.3 bn, Splash at RM1.6 bn and ABASS at RM600 millions.
In view of the looming debacle, where some of these concessionaires are facing serious concerns in repaying its bonds while water tariffs are scheduled to increase beyond tolerable range, one couldn’t help noticing that the Federal Government has ostensibly embarked on a mega bailout programmes of its ‘cronies’. The undiscerning public would be shocked if we were disclosed the many excesses of some of these concessionaires especially that of Syabas and Puncak Niaga. Capital expenditures should be used as a convenient excuse. To quote but one, the CEO is paid a whooping RM5.1million a year.
The people have earlier suffered in the first round when the federal government forcibly privatised or more appropriately ‘piratised’ the water industry. It looks like it is going to be a double whammy for the consumers and the rakyat again in round 2. It’s a real case of - ‘head I win, tail you lose’ for the cronies.
To put in perspective, the state government was granted by the federal authority to negotiate the buying of all water assets owned by the concessionaires on a willing buyer-willing-seller basis as to consolidate these assets before selling to PAAB.
An offer to the concessionaires was made on Friday, 13th February. The state government offers a total price of RM5.7 bn. RM2 billion to take over Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and RM3.1 billion for PuncakNiaga Holdings’s wholly-owned PNSB and its 70 per cent-owned Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), and the remainder of the amount for Konsortium ABASS Sdn Bhd. The Selangor government already owns 80 per cent of the state’s treatment plants, dams and pipelines.
The offer made by the Selangor Government was made on the basis of one-time book value of the water-related assets in the concessionaires as at 31st December 2007, and a fair and reasonable return to the actual equity invested by the concessionaires since the industry was first privatised.
It should be noted that the offer made by the Selangor state government is guided by and in compliance with the terms and conditions willing signed by all parties in the concession agreement.
But surprise, surprise, even before the dateline of 20th February were up, SPAN came out with a statement that PAAB would commence negotiation with the concessionaires. An offer price of RM9 bn was bandied around.
The writer being a member State’s Water Review Panel would like to call upon the Minister not to ‘rape’ the country twice by buying back these water assets and concessions at inflated prices. Doing so will only vindicate the dictum that the Barisan Nasional government privatises profits and nationalises losses.
It should also be noted that many investment analysts have been using the “discounted cashflow model” which results in significantly higher valuation for these concessions. However, the “discounted cashflow model” is just a technical term for paying the concessionaires its future profits, which in itself is a totally unreasonable proposition, and defeats the purpose of the Governments’ water restructuring exercise.
If we were to acquire McDonald’s today, as argued by YB Tony Pua, another member of the Panel Review, it will be fair to put a value to its future profits as it’s a wholly private enterprise. However, we are acquiring government concessions in this case – which means that the Government should not be paying for future profits for licenses and rights which it has itself granted! Did these concessionaires pay a price for these concessions in the first place?
Be that as it may, as in any negotiations it goes without saying that every offer is subjected to debate. For as long as the concessionaires are willing to talk and negotiate, there are still rooms for a resolution.
But SPAN making a U-turn, in a typical flip-flop fashion so fashionable of the BN government, smacks of downright cronyism and having little regards for the welfare of the rakyat. The consumers in Selangor are now paying RM0.67 per meter3while their Penang counterparts are only charged RM0.37 per meter3. Rumours of higher tariff are already rife. That would be extremely regrettable especially if tariff would be imminently hiked, after a bonanza payout to the concessionaires.
Pada July 2006, Akta Industri Perkhidmatan Air (WSIA), 2006 dan Akta Suruhanjaya Perkhidmatan Air Negara (SPAN) 2006 telah diperkenalkan dan diluluskan oleh Parlimen bertujuan menstruktur semula pengurusan air dan menguatkuasakan pengurusaan industri air bagi seluruh Malaysia dengan diletakkan sepenuhnya di bawah Kerajaan Persekutuan. Dengan kata lain berlaku pemilikan semula industri air sekaligus pengakuan bahawa penswastaan air telah gagal dan keajaan akan membuat ‘bailout mega’ kepada konsesi air.
SPAN sebagai badan mengawal-atur, memantau dan mengawalselia perkhidmatan air, bertanggungjawab menguatkuasa undang-undang berhubungan dengan perkhidmatan air dan pembentungan. Peranan utama SPAN adalah untuk mengeluarkan lesen dan menasihat Menteri dalam urusan penetapan tarif dan mekanisme berkesan untuk perlaksanaan tarif.
WSIA melalui sebuah syarikat pengurusan airnya Perkhidmatan Aset Air Berhad, PAAB akan memiliki kembali seluruh (membeli) aset-aset pihak swasta and negeri (pembentungan, loji rawatan dll) dan kemudian menyewakannya atau memajaknya kembali kepada pihak negeri atau syarikat swasta dan diberi lesen untuk mengendali seluruh pengurusan industri air termasuk pengagihan pembekalan air di negeri-negeri.
Kesemua asset-aset air di Semenanjung Malaysia akan dipindah-milik kepada PAAB sebelum hujung tahun 2009 dengan anggaran pembelian semula oleh kerajaan dengan harga RM15bn. Aset-aset air dipajak atau disewa (lease) kepada syarikat swasta dan kerajaan negeri yang akan diberikan lesen untuk beroperasi. PAAB juga bertangungjawab untuk membantu mendapatkan dana kepada pihak yang mengoperasikan industri air khususnya bagi membiayai perbelanjaan capital (capex).
Sehingga dewasa ini, PAAB telah mencapai dua pengambilalihan asset dan melesen dua kerajaan negeri iaitu Melaka dan Negeri Sembilan dengan jumlah pembelian RM2.1bn.
Dengan dua negeri (2) yang telah ditawan, PAAB punya sembilan (9) lagi yang perlu dilakukan perundingan dan pengambilalihan.
Namun berdepan dengan situasi di Selangor, ia jelasnya tidak semudah dengan 2 negeri di bawah BN. Apakah kerana Selangor di bawah Pakatan Rakyat (PR) ataukah banyak lagi perkara yang rakyat dan umum tidak tahu atau lebih tepat lagi tidak mahu diberitahu? Penulisan ini bertujuan untuk mendedahkan kepada rakyat banyak perkara yang tidak dilaporkan oleh media kawalan BN.
Penswastaan air Selangor bermula pada tahun 1996 di bawah Pemerintahan Tun Mahathir. Konsesi yang cukup mewah (profitable) dianugerahkan kepada pihak yang punya hubungan rapat dengan kuasa Eksekutif (di baca kroni) tetapi tidak punya kepakaran jauh lagi mempunyai trak rekod yang baik tentang pengendalain industri.
Akibatnya 1.5 juta rakyat di Selangor, Lembah Klang dan Putrajaya menghadapi pelbagai masalah termasuk kualiti air, kelewatan mendapat perkhidmatan yang, denda penyambungan yang tinggi (RM50 selepas berbanding RM10 sebelum penswastaan) serta tariff yang tinggi. Pemilik konsesi air turut mendapat pinjaman dan geran dari kerajaan.
Kini, 4 pemilik konsesi menghadapi kekurangan aliran tunai dan menanggung hutang sejumlah RM6.4 bn; Syabas sebanyak RM2.9 bn, Puncak Niaga RM1.3 bn, Splash sebanyak RM1.6 bn dan ABASS masih berhutang sebanyak RM600 juta. Justeru itu, sukar untuk ditolak dakwaan bahawa setelah kerajaan memberikan konsesi yang lumayan dalam pusingan pertama dulu semasa penswastaan, kini kerajaan akan lakukan sekali lagi ’pemberian mewah’ kepada ’kroni mereka’ dalam pusingan kedua penstrukturan industri air.
Inilah amalan urus-tadbir korporat yang sangat berat sebelah sekaligus merosakkan pengurusan khazanah negara, di mana keuntungan diswastakan sementara kerugian dihakmilikkan negara dan ditanggung oleh rakyat dan pembayar cukai.
Bagi mengingatkan proses penstrukturan semula air di Selangor, Kerajaan Pusat telah mengizinkan Kerajaan Selangor bagi memulakan proses perundingan pembelian semula asset-aset air milik 4 konsesi air di Selangor yang kemudianya akan dikonsolidasi untuk dijual kepada PAAB. Aset-aset ini akan dibeli atas dasar jual-beli yang saling redha (willing-buyer-willing seller).
Sebuah Panel Perunding telah ditubuhkan oleh karajaan Selangor bagi tujuan membuat penaksiran seluruh asset-aset air pemegang 4 konsesi air (valuation of assets). Satu tawaran berjumlah RM5.7bn telah dimajukan kepada kesemua pemilik konsesi pada 13 hb Februari, 2009. Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) ditawar RM2.0 bn. PuncakNiaga Holdings’s melalui syarikatnya PNSB dan Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) yang dimilikki 70% ditawarkan sejumlah RM3.1bn. Selebihnya adalah bayaran kepada Konsortium ABASS Sdn Bhd. Kerajaan Selangor sendiri memilikki lebih dari 80 peratus asset-aset air di Selangor.
Kerajaan Selangor meyakini bahawa tawaran tersebut adalah menasabah dan mengambil kira segala terma dan syarat perjanjian konsesi dahulu. Tawaran perolehan dibuat kerajaan negeri ini telah mengikut satu metodologi penilaian berdasarkan nilai asset (asset value) tolak segala penyusutan nilai (depreciation) sehingga tarikh Disember 2007.
Umum perlu dimaklum bahawa Kerajaan Selangor terkejut dengan tawaran balas yang memintas usaha mereka, apabila SPAN melalui PAAB ingin memulakan perundingan langsung dengan pihak konsesi air pada tarikh 18hb Februari. Lebih malang lagi kerajaan negeri dimaklumkan bahawa jumlah harga yang ditawarkan oleh pihak Kerajaan Pusat dikatakan adalah sebanyak RM21bn.
Apakah keseluruhan penstrukturan ini akan meletakkan akhirnya rakyat dan pengguna di Selangor, Kuala Lumpur dan Putrajaya terbeban dengan tariff yang tinggi nanti? Rakyat Pulau Pinang kini di kenakan tariff sebanyak RM0.37 setiap meter kubik sementara di Selangor pengguna di kenakan RM0.77 setiap meter bubik. Kerajaan Selangor berazam untuk menurunkan tariff ini sebanyak 10% tahun 2009 kepada RM0.69 dan seterusnya 20% dalam tahun 2011 dan 25% dalam tahun 2013. Dasar membekalkan air percuma 20 meter kubik akan diteruskan.
Apakah Kerajaan Persekutuan akhirnya akan memberikan lesen kepada pihak swasta, samada Syabas atau Puncak Niaga untuk mengurus seluruh industri air di Selangor ini? Apakah Kerajaan Selangor akan dipinggirkan?
Apakah penstrukturan semula air ini akan menyaksikan rakyat terus dibeban dengan tariff yang tinggi dan bayaran yang mewah diberikan kepada konsesi yang dulunya telah pun mendapat laba yang besar?
Apakah ini caranya supaya Puncak atau Syabas dapat membayar CEOnya dengan gaji berjumlah RM5.1juta setahun atau RM700,000 sebulan seperti yang didedahkan oleh media baru-baru ini?
Apakah ini caranya Kerajaan Umno/BN mahu ’menghukum’ segala salahlaku Syabas dengan segala kemungkiran seperti melakukan lebih dari 70% tender mereka secara tidak tender terbuka, berlawanan dengan perjanjian konsesi, percanggahan nilai kontrak sebanyak RM325 juta semasa pengauditan, pengubahsuaian melebihi had sebanyak RM23.2 juta dari yang dipersetujui kerajaan Pusat?
Cukuplah dengan penswastaan air yang gagal pada pusingan yang pertama, seperti kegagalan penswastaan IWK, MAS Putra-Star LRT dll. Namun seandainya Kerajaan Pusat mahu juga meneruskan urus-tadbir buruk ini dan meneruskan pendirian untuk ‘menghadiahkan’ pihak swasta lesen mengurus air di Selangor ini, maka tunggulah datang masanya apabila rakyat pula akan membuat hukuman muktamad seperti yang disaksikan dalam tsunami politik yang melanda mereka dan seterusnya pada P/raya kecil di Permatang Pauh, di Kuala Terengganu dan sedikit waktu lagi di 3 Bukit Pertarungan!
Akhirnya rakyat akan menghukum mereka di PRU ke-13 secara pukulan maut!
Dr Dzulkefly Ahmad,
MP Kuala Selangor dan Ahli Panel Review Air Selangor.
The Minister for Energy, Water & Communications has confirmed that not only will the Federal Government acquire the assets from the privatised companies at a higher price than what is offered by the Selangor Government, they will also be likely over the RM6.4 billion debt of these companies!
…Syarikat konsesi juga ada pinjaman daripada bon dan sebagainya, dan jika mereka tidak mampu bayar pinjaman atau bon, ia akan beri kesan kepada syarikat serta menjejaskan imej industri pada masa akan datang.
I had wanted to raise the above point during the debate in Parliament today when the Minister was responding to the Selangor Water Restructuring issue. But he cut short his overall response (despite having plenty of time to spare) and refused to allow me to ask a single question. My colleagues, Charles Santiago (Klang) and Dr Dzulkifli Ahmad (Kuala Selangor) did manage to ask 1 question each where the Minister responded with evasive answers. But that was about it.
These privatised water companies in Selangor, Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor (SYABAS) etc., have obviously mismanaged themselves to a state whereby they are unable to repay the excessive amount of bonds which they have sold to the market.
Now they hold the state and government to ransom, by saying that water service quality will deteriorate if the Governments do not bail them out to the tune of billions, while at the same time, compensating them for future “loss of profits”!
And all the Minister wants to do? Protect the “image of the industry”! At the same time, he tells us not to “politicise” the water issue so that they can bailout their UMNO cronies in peace. He wish!
As reported by The Sun today, Water Services Commission (SPAN) CEO Datuk Teo Yen Hua promised that
…water concessionaires that have migrated to the licensing regime will have to adhere to the licensing requirement which will be reviewed every 3 years and any violation of the Water Services Industries Act 2006 (WSIA) will cost them the license.
… these companies will have to justify their earnings and if there is any violation, SPAN will recommend to the minister not to renew their license. This is for the protection of the consumers.
Sweet sounding words indeed! Are you confident now that your interests are protected? Can you believe him? Am I asking rhetorical questions?
It’s now public knowledge that SYABAS has already breached many many terms of their concession agreement including:
…more than 72% of contracts worth a total of RM600 million were awarded to selected companies via direct negotiations and only 25% via competitive open tender, which clearly violates the agreement.
…the audit also found more than RM325 million in discrepancy between the summary of contracts awarded in 2005, 2006 and 2007 and Syabas’s review document (referring to general accounts).
…Syabas had breached the water privatisation concession by using imported pipes from Indonesia for its RM375 million pipe replacement project in the Klang Valley instead of sourcing them locally.
…questions are also being raised over the RM51.2 million spent to renovate the Syabas office when the Selangor Water Regulatory Department (JKAS) only approved RM23.2 million for this in 2005.
The Selangor Government itself has called for the concession agreements to be terminated based on the above breaches which were found by the National Audit Department since November last year.
Both SPAN and the Minister are dilly-dallying over the “breach”, claiming that they needed the advice from the attorney-general’s office which isn’t forthcoming. Yah, right.
It certainly raises the question if we have a regulator who practices the concept of “pagar makan padi”, who claims to protect the interest of consumers, but who in reality favours the exploitative concessionaires.
So I hope, Dato Teo, before you promise that tomorrow will be better, act on what’s on your plate today. If you can’t even take action on the breaches happening under your noses today, then how do you expect the rakyat to trust you on your promises for the future?
Please don’t kid us, Dato. We are not as stupid as you think we are. Read also the editorial by Terence Fernandez in The Sun yesterday.
The Selangor State Government has promised that if we were to take over the operations and maintenance of the water concessions in Selangor, we will be able to immediately offer a 10% reduction in water tariffs, while longer term improvements in efficiency will easily bring about a 25% reduction in tariffs within 5 years. Instead a bailout is now in progress for these private water concessionaires.
Here’s a clear illustration of why it can easily be done by comparing what the people of Selangor pays for water today, relative to our friends in Penang.
The above shows clearly that at the people of Selangor are being fleeced for its water for at every stage, Syabas charges more than double the rates charged by Perbadanan Bekalan Air (PBA) Pulau Pinang!
In fact, if you use only 38m³ of water a month, in Penang you’d be paying the rate of RM0.42, while in Selangor, you’d be paying a whopping rate of RM2.00, or nearly 5 times the price! Or in absolute terms, you’ll be paying RM11.96 in Penang, but it’s an incredible RM32.85 in Selangor and KL!
What’s more, PBA is very profitable (check the accounts) despite the lower water rates. It made RM31.3 million last year on revenues of RM187.8 million, or a very decent net profit margin (after tax) of 16.7%. Therefore Syabas which supplies much more water than Penang, should have the economies of scale to offer even lower prices than Penang!
Hence for the Selangor state to promise that we can cut the fat in Syabas to reduce rates by 25% within 5 years is “chicken feet”!
How can the state reduce the tariffs? To avoid the hike, it would have to compensate the concessionaires and this could amount to RM38 million a month. If we take over the assets, it would be much lower than the 31% [scheduled] tariff hike.
The Minister misses the point, whether intentionally or otherwise.
The whole idea about asking the Federal Government to support Selangor’s takeover offer is so that we can get out of the crony contract signed by the previous Minister, which allowed Syabas to increase rates in 2009 by up to 37%, or a monthly RM38 million compensation in exchange.
If Selangor government takes over the assets and concession, we will then be able to offer not just a token “lower tariff hike” but actually be able to cut rates by 10% immediately, and more after working off the fats in the system.
Puncak Niaga Holdings Bhd (PNHB) Executive Chairman, Tan Sri Rozali Ismail gets paid RM5.1 million in director’s fee/salary as per the 2007 Puncak Niaga Holdings Berhad annual report. It’s well within the Top 10 highest paid directors in Malaysia.
According to Malaysian Business, he’s also the 33rd richest man in Malaysia, after successfully securing the water privatisation deals in Selangor, under its subsidiaries, Puncak Niaga Sdn Bhd and SYABAS Sdn Bhd.
When asked by reporters about his pay package, he had only this to say, “…If they want professionals to run the company, they will have to pay.” Ooooh….ouch!
Now he wants the Federal Government to pay much more for “his” water concession which was granted to PNHB for a song (he rejected Selangor Government’s offer), while at the same time, also asking the Government to take over all the companies’ bond and loan obligations amounting to RM4.1 billion in total due to ever increasing cashflow problems. (Note: PNHB incurred a quarterly loss (for the first time?) for its most recent Oct-Dec 2008 results.)
Well, looks like in Malaysia, even if you get monkeys to run companies, you will still have to pay.
As highlighted in the earlier blog post, the Selangor Government’s offer to acquire the assets and concessions from the privatised water companies in the state was sabotaged by the Federal Government in a most shocking manner, and it certainly reeks of another mega bailout for failed privatisation projects.
The Selangor Members of Parliaments involved in the above acquisition exercise issued another statement yesterday to the above effect, as follows:
Federal Government Sabotaged Offer by Selangor Government to Acquire Water Assets and Concession in the State
The Selangor state government made an offer to 4 privatised water service providers – Puncak Niaga Sdn Bhd (PNSB), SYABAS, SPLASH and ABASS to acquire their water assets and concessions on the 13th February 2009.
The combined RM5.71 billion offered was made with the objective to deliver the lowest possible water tarriffs for the residents of Selangor and Kuala Lumpur. At the same time, the offer was consistent with, and guided by the terms and conditions specified in the concession agreements signed willingly by all parties involved. It was a comprehensive offer because it encompasses the audited asset value of all water-related assets as well as a very fair and reasonable return to the capital invested by the respective concessionaires.
However, before the concessionaires are able to respond to the state government’s offer by the 20th February, we are shocked that the Ministry of Energy, Water and Communications, via Dato Teo Yen Hua, CEO of National Water Services Commission (SPAN) announced on the 18th February that the Federal Government will proceed to negotiate directly with the water concessionaires.
Instead of supporting the state’s offer, SPAN intentionally threw a spanner in the works to sabotage the Selangor state’s attempt at delivering the lowest possible water tarriffs to her people.
For with an alternative competing offer which will not only encompass higher cash valuation but also more lucrative terms and conditions from the Federal Government, SPAN has single-handedly destroyed any likelihood of a positive response from the concessionaires to the state government.
Therefore with SPAN’s interference, it was not surprising that the concessionaires rejected the state government’s offer on 20th February, last Friday. We will like to call upon the Minister to explain the actions of his Ministry for sabotaging the efforts of the Selangor State Government.
We will like to reiterate our position that if the offer from the Federal Government to acquire these assets and concessions at the same or lower price than what the Selangor state government has offered, we will not only agree to letting the Federal Government lead the negotiations, but also provide the Ministry with our full support and co-operation.
If however, the Ministry offers the concessionaires a much higher cash value for its assets as well as lucrative license terms for them to continue as the water operators in the state, the Minister must explain why he is forsaking the rights and interest of 7.3 million population of Selangor and Kuala Lumpur.
We will also like to emphasize to the Minister that under the law, particularly the Water Services Industry Act 2006, as well as the terms of the current concession contracts, the Selangor state is a counter-party to all previous and future agreements. Hence the attempt by the Federal Government to unilaterally negotiate with the concessionaires is illegal and will be subjected to future dispute and complications.
Therefore, we call upon the Federal Government to respect the rights of the State and let the Selangor Government proceed with the negotiations with the concessionaires in the interest of the people of Selangor and Kuala Lumpur.
Almost as if on cue, the Federal Government has dismissed the Selangor state government’s attempts to return the rights of cheap water and efficient water supply to the people of Selangor and Kuala Lumpur.
Two days ago, National Commission of Water Services (SPAN), on behalf of the Ministry of Energy, Water & Communications, surprised the state and the public by declaring that the Federal Government will unilaterally proceed to negotiate with the water concessionaires in the state directly, by-passing the state.
The CEO of SPAN, Dato Teo Yen Hua (one of those behind the failed original water privatisation exercise which screwed Malaysians throughout the country in the first place) gave some flimsy excuse of an alleged non-existent deadline which was missed by less than week, acting almost like a lackey for the concessionaires.
This came while the state government was still waiting for a response from the respective concessionaires on our earlier buy back offer. In fact, the SPAN U-turn trespasses the constitutional rights of the state and the Menteri Besar, Tan Sri Khalid Ibrahim rightly rapped SPAN and demanded that Dato ‘mischievous’ Teo declare his interest in the matter.
It was a clear attempt at sabotaging the state negotiations as the concessionaires will clearly reject the offers by the state as they know that the Federal Government will definitely pay much more money to take back their concessions!
Unsurprisingly, as if on cue, these concessionaires rejected Selangor’s offer today (Puncak Niaga & Syabas here, Gamuda & Kumpulan Perangsang here) while obviously twiddingly their thumbs and licking their lips for a much more lucrative offer from the BN Government to line their pockets.
As highlighted in my earlier post, the Minister in this case has near absolute powers to determine the outcome of the restructuring exercise. It now appears that he will not use these powers to protect the rights and interests of the rakyat, but instead abuse it only to enrich and bailout the water concession cronies. The country is getting raped twice, right before our very eyes.
Further to my blog post last night with regards to a letter I have received defending the interests of investors and bondholders in the water concessionaire issue, there was a comment which highlighted that these investors and lenders who ‘invested’ blindly (without sight of the concession agreements) should not be protected.
Actually, chances are the bondholders do have “special access” to these supposed OSA agreements and documents (its only when opposition politicians get their hands on them, there’s a problem ;-)).
But more importantly, these “investors” invested on the basis that the BN Federal Government would always act in the interest of the concessionaires as most of whom are cronies to UMNO. Hence, in all probabilities, many of them invested based on “faith”.
Nobody expected the result of the March 8 elections last year and the subsequent focus of the Pakatan governments to give the people a “new fair deal”.
Should the investors (or their advisors) then, be compensated for their blind faith in the BN government, at the rakyat’s expense? You tell me.
(Remember the days when people invested and lent heavily in UEM, Time and Renong because they believed that BN will always back and bail them out - should these investors and lenders be compensated not only for their losses but also additional profits? BN bailed out UEM, Time and Renong alright, they rescued their cronies - remember Halim Saad? but left everyone else high and dry)
I’ve blogged on “We Want Our Water Back Too!” two weeks ago. The Selangor state government has since issued offer letters to the concessionaires to take back the water concessions.
The four Selangor members of parliament [Charles Santiago (Klang), William Leong (Selayang), Dzulkifli Ahmad (Kuala Selangor) and myself] who are involved in the Water Review Panel issued the following press statement today. Additional comments are available at The Malaysian Insider, Malaysiakini and The Star.
Call Upon the Minister of Energy, Water & Communications to support and endorse the Selangor Government’s Offer to Acquire the water assets and concession in the state
The water privatisation exercises in Selangor was started in the early 2000s by the Mahathir administration, where hugely lucrative concessions were granted to politically-linked private companies with neither the skills or experience in the water industry, nor the necessary equity funds to operate these businesses. As a result, the residents of Selangor and Kuala Lumpur were forced to pay high prices for the water supply, unreasonable penalties as well as often poor service quality.
In view of the clear unsustainability and failure of the privatisation exercise, where some of these concessionaires are facing serious concerns in repaying its bonds and water tariffs are scheduled to increase beyond tolerable range, the Federal Government has embarked on an exercise to nationalise the water-related assets nationwide under the new Water Industry Services Act (WISA) enacted in 2006.
The people has suffered once already when the assets were forcibly piratised by the Government. We will like to call upon the Minister not to rape the country twice by buying back these water assets and concessions at inflated prices. Doing so will only provide the basis to the dictum that the Barisan Nasional government privatises profits and nationalises losses.
The Selangor members of parliament who sits in the Selangor Water Review Panel call upon the Minister, who is granted wide-ranging powers under WISA, to not only support, but help execute Selangor’s fair and reasonable offer to acquire the water assets and concessions in the state. The offers to the concessionaires were made last week on Friday, 13th February.
The offer made by the Selangor Government was made on the basis of one-time book value of the water-related assets in the concessionaires as at 31st December 2007, and a fair and reasonable return to the actual equity invested by the concessionaires since the industry was first privatised. It should be noted that the offer made by the Selangor state government is guided by and in compliance with the terms and conditions willing signed by all parties in the concession agreement. Therefore contrary to press reports in the last few days, the acquisition offer is neither a cynical offer which is too low, or without basis.
It should be noted that all investment analysts have been using the “discounted cashflow model” which results in significantly higher valuation for these concessions. However, the “discounted cashflow model” is just a technical term for paying the concessionaires its future profits, which in itself is a totally unreasonable proposition, and defeats the purpose of the Governments’ water restructuring exercise.
If we were to acquire McDonald’s today, it will be fair to put a value to its future profits as it’s a wholly private enterprise. However, we are acquiring government concessions in this case – which means that the Government should not be paying for future profits for licenses and rights which it has itself granted!
The Minister is granted wide-ranging powers under the WISA (2006) Clause 191(5) where:
The determination of what amounts to national interest issues arising from the coming into operation of this Act shall be made by the Minister and such determination shall be final and binding upon all persons and shall not be challenged, appealed against, reviewed, quashed or questioned in any court.
Therefore with the powers vested in the Minister, Dato’ Shaziman Abu Mansor, a newly minted Minister since the last elections, we call upon the Minister to do the right thing and act to ensure that the rights and welfare of Selangor people and that of all Malaysians.
Amidst all the political hoollaboo over the state of affairs in Perak, and some say the rest of the country, you would be pleased to know that the Pakatan Rakyat government continues to exert pressure on the federal government and other relevant parties to provide a better deal for the people.
You have read my multiple posts whether here, or in the media (the latest published yesterday in The Star) with regards to efforts DAP is making to press the Government to ensure a more equitable toll rate for our highways, or if not possible, then buy them back as provided for in the concession agreements.
At the same time, I also sit in the Selangor Water Review Committee, which is appointed by the Menteri Besar in September last year. The committee also include Charles Santiago (DAP - Klang), Dr Dzulkifli (PAS - Kuala Selangor), William Leong (PKR - Selayang) and several other activists, have been very actively looking into how restructuring the water assets and distribution ownership can be done to remove similarly, extraordinary profits made by private concessionaires at the expense of the Selangor rakyat.
While I had objected to the Selangor Government’s plan for free water earlier, I’m in full support for its plans to take over the water distribution business from its current concessionaire, Syabas, which is 70% owned by Puncak Niaga Berhad.
At the end of the day, this exercise if successful, would mean lower cost of water for all Selangor (and Kuala Lumpur too!). If you have not already known, the Syabas concession agreement gives Syabas the right to increase the water rates by as high as 37% for 2009 and delays in doing so will only result in compensation being paid by the state or federal government.
After studying the Syabas contract and receiving the audit report from Jabat Audit Negara, the state government has written officially to the federal government to request for its agreement to terminate the Syabas concession agreement as there were clear breaches to the agreement. (Under the agreement, the state government can only terminate the agreement with the consent of the federal government.)
Sources said the audit showed that more than 72% of contracts worth a total of RM600 million were awarded to selected companies via direct negotiations and only 25% via competitive open tender, which clearly violates the agreement.
In addition, the audit also found more than RM325 million in discrepancy between the summary of contracts awarded in 2005, 2006 and 2007 and Syabas’s review document (referring to general accounts).
Of course, the extraordinary profits do not just get reflected in the profit and loss statements but also by the way Syabas spends its money.
Aside from the breach of contract issue, questions are also being raised over the RM51.2 million spent to renovate the Syabas office when the Selangor Water Regulatory Department (JKAS) only approved RM23.2 million for this in 2005. The audit review found that Syabas had failed to comply with the requirement as approved by JKAS.
I was at the presentation by the Jabatan Audit, and there were certainly many more points of contention and extravagance on the part of the Syabas management.
Hence, the biggest question now is whether, inspite of the various material breaches in the concession agreement will the Barisan Nasional federal government stand on the side of the concessionaire, or will it stand with the people and act in the latter’s interest?
It has been more than a month since the letter was sent to the Minister of Water, Energy and Telecommunications, and we have not heard a single response from the Minister despite our many meetings with its officials since. You can be assured that the Selangor state government will do its utmost, despite having to do many things with our hands tied behind our back, protect the interests of the people.
Hence, not only do we want our highways back, we want our water back too!
Stop Federal Government from Bailing Out Crony Companies Today!
Support the Selangor State Government in taking over concession companies for the sake of the people.
The economy is sliding into recession. By raising water tariffs, the people will suffer further. The Federal Government intends to pay a very high price to water concession companies to take over their assets. This will result in higher water rates.
It starts in Selangor. If we allow this to happen, the BN Federal Government will practice this in all other states too.
The concession companies are greedy. They say the State’s offer is too low. They’ve already taken their millions of ringgit. Don’t let them run to the bank once again with your money.
3 Reasons why the State Government must take over
You will pay 10% less for water in 2009
·Continuation of the Free Water for 20m3 Policy
·Will reduce water rates by 10% in 2009, from RM1.48/m3 to RM1.33/m3
·Will reduce water rates by 20% in 2011, to RM1.18m3
·Will reduce water rates by 25% in 2013, to RM1.11m3
·Federal Government would instead increase water tariffs
It is a Backdoor Bail-Out
·Federal Government will bail-out its cronies who are deeply in debt
·Federal Government will pay extremely high prices to concession companies for their assets
·Money is taken from the masses and given to the already rich
·Corrupt practices will continue
Syabas will Profit most of all
·Syabas is the sole distributor of water in Selangor and Kuala Lumpur
·Federal Government will give the operating license back to Syabas
·Quality of water has deteriorated tremendously – water smells bad and is filthy
·More than 72% of contracts worth RM600 million were awarded by Syabas to selected companies
·Hence failed to practice open tenders, as demanded by its concession agreement
·You have to pay RM50 for water reconnection fees, compared with RM10 in the past as a consumer
·More than RM325 million in discrepancy was found between the summary of contracts awarded in 2005, 2006 and 2007 and Syabas’s review document
·RM51.2 million was spent to renovate the Syabas office when the Selangor Water Regulatory Department (JKAS) only approved RM23.2 million for this in 2005
·Under Syabas’ agreement, 25% tariff hike is scheduled for 2012, followed by a 20% hike in 2015, a 10% hike in 2019 and a 5% hike on 2021, 2024, 2027 and 2030
·Tan Sri Rozali Ali, Executive Chairman of Puncak Niaga Holdings Berhad, was paid RM5.1 million Director’s Fees in 2007 (RM425,000 a month!), one of the highest Director’s Fees in Malaysia
·Tan Sri Rozali Ali is also Executive Chairman of Syabas, 70% of which is owned by Puncak Niaga.
Water is a fundamental human right and should not be transformed into a profitable commodity. Governments have a responsibility to realise this right.
By paying concession companies sky-high prices, the Federal Government is privatising profits and socialising losses.
It is illegal for the Federal Government to negotiate directly with the concession companies without the State Government’s involvement, under s. 191(4) and 191(7) of the Water Services Industry Act (WSIA) 2006.
The Minister of Energy, Water and Communications has the right to terminate concession agreements under the WSIA 2006, but has refused to do so.
What Can I do?
Organise meetings at the local level with your Local Council or Residents’ Association.
SMS to friends and to the Federal Government objecting to the Syabas Bail-Out.
Fax to the Ministry of Energy, Water and Communications at 03-88893712 objecting to the Syabas Bail-Out and that of other concession companies.
Write to the press and online media expressing your opinions.
Blog about the issue and post comments on other blogs.
