The spat between the Selangor government and Syarikat Bekalan Air Sdn Bhd (Syabas) is now left to the National Water Service Commission (SPAN) to resolve.
"SPAN acts as a regulator when it comes to such issues. They should take the necessary action to resolve the matter immediately," Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said yesterday.
Acknowledging the "water war" in the State, he said: "There is a ministry joint committee and the Selangor government to look into the tabung budi issue.
"Nevertheless, we leave SPAN to discuss the issue with both parties."
Matters came to a head recently when Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim called on the Federal government to revoke the concession to Syabas, claiming the company breached the concession agreement.
Last month, Selangor gave Syabas 14 days to stop the tabung budi programme, but this was ignored, prompting the State government to take the concessionaire to court to have its licence withdrawn.
Under the tabung budi programme, launched last year, Syabas granted households, who received free water from the State government, to waive the subsidy and donate the money to the fund instead.
Syabas said it used the money to help defray reconnection fees for needy consumers. This subsidy for the first 20 cubic metres of free water used each month was given when Pakatan Rakyat took over the State government in March 2008.
While Selangor has yet to make good on its threat to act against Syabas, the concessionaire filed suits with the Kuala Lumpur Civil High Court on Monday against Abdul Khalid and PJ Utara MP Tony Pua over statements they made concerning tabung budi.
The State government allocated RM9 billion to buy over the whole water system from Syabas and would decide soon on the next course of action.
Abdul Khalid contended the water concession agreement with the four companies — Syabas, Puncak Niaga (M) Sdn Bhd, Konsortium Abbas Sdn Bhd and Pengeluar Air Selangor Sdn Bhd – should stop so the water industry could be taken over by the State.- MalayMail
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