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.

PRESS SECRETARIATE
SELANGOR MENTERI BESAR OFFICE