Tan Sri Khalid Ibrahim accused two water companies today of attempting to frustrate his efforts to consolidate the water industry in Selangor.
Puncak Niaga Sdn Bhd (PNSB) and Syabas said on Wednesday they could not make a decision on the Selangor mentri besar’s takeover offer, claiming that it was filled with ambiguities.
“Puncak Niaga Holdings Bhd’s (PNHB) and Syabas’ statement that the companies cannot make a decision on the offer because the offer documents, which were prepared by the Selangor government, are not detailed is a vague statement filled with evil intentions,” said Khalid in a statement today.
“The offer documents prepared by the Selangor government on taking over the water concessionaires are detailed and contain enough information for the water concessionaires involved to make a decision,” he added.
He claimed that the offer documents fulfilled international standards and that the terms of the offer were specified clearly to prevent doubt from arising.
He said yesterday the Selangor state government will not increase its offer of RM9.3 billion to buy over the four water concessionaires in the state.
He said the state would go for arbitration if the water companies felt they were getting a raw deal.
He said today that the offer was based on information given to the state government.
“The value of the offer for the takeover can be done in a fairer and more reasonable manner that is acceptable to all water if Puncak Niaga and Syabas supplied the Selangor government with the necessary information,” said Khalid.
“The Selangor government stresses that this issue can be resolved if the state government was given all the needed information,” he added.
The MB said recently that Selangor had made a new offer of RM9 billion for the assets of the four water concessionaires in the state — Syabas, PNSB, Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS — before selling all assets to the federal government.
The Malaysian Insider had reported last month that Selangor will offer about RM5.7 billion to acquire the remaining state water assets, while leaving its present owners to pay off their own liabilities.
Selangor’s four water players are at risk of debt payment default as water bonds approach their maturity dates.
The debt service problem started when Syabas was barred from implementing a 37 per cent tariff hike agreed upon in January 2009 after the Selangor government claimed the sole water distributor had not done enough to reduce leakages which cost the state millions.
This, in turn, led to payment problems between Syabas and water treatment concessionaires PNSB, Splash and Konsortium ABASS, who supply it with treated water.
Selangor, which already owns 80 per cent of the state’s water supply assets, is preparing to take over the remaining assets after Putrajaya said it did not object to direct negotiations between the state government and concessionaires.
It intends to retain management of the water assets, which also cover the federal territories of Kuala Lumpur and Putrajaya.
The state government has made two previous offers for the water assets.
The first offer, RM5.7 billion for assets and equity, was turned down by all four players, while the second RM9.4 billion offer — this time including liabilities — was rejected by Syabas and sister company PNSB.
The two-year water consolidation impasse began soon after the loose federal opposition pact unexpectedly took control of Selangor, Malaysia’s richest state, in the last general election.
Since then, privatisation plans for the water industry have been put in deep freeze as federal and state governments engage in what industry watchers call “excessive politicking”.
PR wants to control the state’s water assets so it can fulfil its promise to keep water cheap for Selangor residents by controlling tariffs.
“In any company takeover, transparency is a must to ensure a fair and just resolution,” said Khalid today.
“The Selangor government repeats its commitment to control the water concessionaires in order to provide water services at a reasonable price,” he added. - Malaysian Insider
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