KUALA LUMPUR: The Selangor government regrets the decision by the CEO of Suruhanjaya Perkhidmatan Air Negara (SPAN) Dato’ Teo Yen Hua to negotiate directly with the four concession companies to acquire their water treatment and distribution assets as part of the restructuring of exercise in Selangor.

This move is inconsistent with the Federal Government’s decision on January 16, 2008 allowing the state government, through Kumpulan Darul Ehsan Berhad (KDEB), to take over the operation and maintenance of the water assets from the concessionaires in a joint exercise.

It would subsequently enter into a sale and leaseback of the water treatment and distribution assets from Pengurusan Aset Air Berhad (PAAB). Pursuant to that decision, the state had taken all efforts to ensure that the restructuring exercise is completed in a manner that benefits the people of Selangor and Kuala Lumpur.

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 13th February are set to expire on 20th February. The decision undermines the Constitutions of the Federal and the State Constitutions and federal-state relations.

The Selangor Government questions the decision made by SPAN on a matter that falls under the jurisdiction of the Ministry of Energy Water and Communication (KTAK). We believe that this is completely inconsistent with the spirit of the Water Services Industry Act (WSIA) 2006. It also not consistent with the provisions of section 191(4) of the WSIA 2006 that requires the concession companies to negotiate with both the Federal Government and the Selangor Government in its capacity as a counter party to each of the concession agreements and supplementary agreements.

Instead of supporting the State Government’s initiative to buy back these water concessions in the interest of the rakyat with our fair and reasonable offer, Dato’ Teo appears now to be pandering towards the interest of private concessionaires. We urge that he declares his interest on the matter. If any irregularity is found, we call for his resignation.

The State believes that SPAN’s decision will have deep negative implications on the Malaysians in Selangor and Kuala Lumpur. The Selangor Government assures that it shall continue to seek to protect public interests through all available means and to ensure the people of Selangor and Kuala Lumpur are provided with affordable and treated water.

DATO’ MENTERI BESAR SELANGOR
TAN SRI ABDUL KHALID IBRAHIM