Published: Thursday January 10, 2013 MYT 9:17:00 PM
Updated: Thursday January 10, 2013 MYT 11:51:55 PM
Chin: Intended takeover of Syabas violates water concession agreement
PUTRAJAYA: The Selangor government cannot take over Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) for it violates the conditions stipulated in the water concession agreement, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.
He said the company was appointed to manage and administer water supply in Selangor in 2004 and the state government would be liable if it were to terminate the contract.
Commenting on Selangor's demand to take over water operations from Syabas to resolve water woes in the Klang Valley, he said the state government should instead hold talks with Syabas for the acquisition could only materialise if Syabas agree to it.
"Let me tell Selangor Mentri Besar Tan Sri Khalid Ibrahim that the federal government had never stopped the state from taking over the company because we do not have any equity in the company except for a golden share for the purpose of monitoring," he told reporters.
Khalid had asserted that Syabas' failure to fulfil its responsibilities under the concession agreement with the state in providing services to consumers has made it imperative for the state to step in.
He said this in the wake of the water crisis in 90 areas in Gombak and Ampang allegedly due to the Wangsa Maju water pump house operating at excess capacity, affecting nearly 500,000 users.
Urging the state government to stop blaming Syabas for the water crisis, Chin said: "This is not a takeover issue, instead all quarters, namely the state government, Syabas and the federal government should sit down and find a solution to ensure that this problem does not recur for water is the basic need of the people.
"The federal government is ever willing to help in any way it can and plan future water needs." - Bernama