KUALA LUMPUR, February 19 – The state government regrets the decision of the National Water Services Commission (SPAN) through its Chief Executive Officer, Dato’ Teo Yen Hua, to negotiate directly with four concession companies for water treatment and distribution which has become part of the water industry restructuring process in Selangor.

The Dato’ Menteri Besar, Tan Sri Abdul Khalid Ibrahim said the decision which involved a policy issue should not have been decided by Dato’ Teo as SPAN was only a regulatory body.

“I hope the government and minister take quick action so that investors, both local and foreign, do not think that this restructuring was done  in a disorderly manner,” he said in a media conference at the Parliament Lobby, this afternoon.

Abdul Khalid said this action was also not in line with the decision by the federal government on January 16th last year which had allowed the state government through Kumpulan Darul Ehsan Berhad (KDEB) to take over water operations and asset maintenance from the concession holders.

The media today reported that the Pengurusan Aset Air Bhd (PAAB) would make a direct offer to take over water  management from four concession companies which should done by the state government.

According to reports, this was done because the state  government had shown no progress since being allowed to restructure the water industry in this state by the federal government.

The people of Selangor will also face water tariff increases of up to 37 per cent if this water restructuring process is not done before March 31st as stipulated.

Commenting on this, Abdul Khalid said the decision by SPAN was akin to stopping the state government’s efforts to get feedback from the four concession companies which had all been given till tomorrow to respond to the offer.

“It has therefore come as a shock to learn that SPAN is embarking on an obvious “u-turn” to the  federal government’s earlier decision even before our Letters of Offer to these concessionaires dated February 13th are set to expire on February 20th (tomorrow),” he said.

He said, previously the state government had given activity reports (restructuring), besides letters updating current situations.

In fact, he said, a meeting was held with SPAN and representatives from the Ministry of Energy, Water and Communications last Tuesday to explain the water restructuring process.

Abdul Khalid said the decision by SPAN should be decided by the Cabinet as had been done before this.

“This incident has caused the people to question the federal government’s authority towards the state government in relation to jurisdiction as stated in the Federal and State Constitutions,” he said.

He added, the action was not only contrary to the Water Industry Service Act (WISA) 2006 but was also inconsistent with Section 191(4) of the act which required concession companies to negotiate with both the federal and state governments.

Abdul Khalid said Dato’ Teo who had previously supported the state government’s initiative for restructuring in the interests of the people, was now doing otherwise.

He then urged Dato’ Teo to state any interests he might have in this situation.

“If any irregularity is found, we call for his resignation,” he said.

He said, the state government  also believed that SPAN’s decision would have negative implications on the people of Selangor and Kuala Lumpur.

However, the state government would continue its efforts in protecting the interests of the people. – NOOR ALLIA KASSIM