SHAH ALAM, Nov 23 — Selangor has warned Syabas to cancel its Tabung Budi fund within two weeks or risk losing its water distribution licence.
Selangor Mentri Besar Tan Sri Khalid Ibrahim said the sole water distributor’s Tabung Budi scheme was a violation of the water concession agreement.
“According to this notice, the water distribution licence which was given to Syabas under subsection 12(3) of the Water Supply Enactment 1997 will be withdrawn if Syabas fails to cancel the (Tabung Budi) programme,” said Khalid (picture) in a statement today, referring to the cancellation notice that was issued to Syabas by Selangor Water Regulatory Department director Nor Azmi Diron today.
“The Selangor government sent a notice to Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to stop the Tabung Budi programme because it violates conditions in the water concession agreement,” he added.
The fund, which was launched last month, allows Selangor residents who wish to waive their right to free water pay for the 20 cubic metres they receive gratis from the state every month, valued at RM11.40. Syabas then uses the money collected to help other residents who have no access to clean water.
Recently, Selangor has said that collecting money from those who wish to pass their entitlement to those more deserving was akin to double-billing the state for the same water, as the state government pays Syabas in full for the free water at RM11 million a month.
Today, the Khalid administration also told Syabas to inform it about the cancellation of the programme.
“Besides stopping the programme within 14 days, Syabas is required to inform the Selangor government about the cancellation. The cancellation must also be announced in major newspapers in Malaysia,” said Khalid.
“The notice reminds Syabas that as a licence holder, the company can only collect and keep the charges (water arrears) that are still owed by the users in the water supply area,” he added.
He stressed that Syabas did not have the right to collect public donations to pay for water arrears through the Tabung Budi fund.
Khalid further accused Syabas of abusing public funds besides violating the water concession agreement.
“Syabas claims that this programme is for charity, but the reality is that Syabas is using public funds for its personal interests,” he said.
The mentri besar pointed out that Selangor paid Syabas for the free water each month through water concessionaire Kumpulan Darul Ehsan Berhad (KDEB) while Syabas was collecting money from the public.
“If Syabas was truly sincere about fulfilling its corporate social responsibility, it should get rid of water charges and water arrears that are borne by those who can’t afford it,” he said.
Recently, Syabas has said the Tabung Budi would help those whose water supply had been disconnected due to unpaid bills settle arrears and get back on the grid.
The water concessionaire has also said that while the Tabung Budi account was managed by Syabas’s staff association, an independent special select committee will decide who gets help. It will comprise members of the public, non-governmental organisations and Syabas officials.
A total of 11 households in Selangor have received assistance since the fund’s inception on August 24 as an internal Syabas and Puncak Niaga (M) Sdn Bhd initiative. The fund has collected over RM350,000 to date, according to Syabas.
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