‘End Syabas concession’

Selangor has asked the Federal Government to revoke the concession given to Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), claiming that the company had breached the agreement.
Mentri Besar Tan Sri Khalid Ibrahim said the officer-in-charge of water regulatory services in the state, Datuk Nordin Sulaiman, had officially written to the Federal Government, but has yet to receive a reply.

He claimed that Syabas had breached the agreement when, collecting money for its charitable fund (Tabung Budi), it collected funds from consumers who opted to forego the subsidy provided by the state government for the first 20 cubic metres of water used each month.
Syabas, which claimed that about RM350,000 had been collected for the fund to date, had said it would be used to help those who do not have access to proper water supply in the state.

Khalid told a press conference yesterday that the state government would go to court over the matter if the Federal Government refused to accede to its requests.
On the suits filed by Syabas against him and Petaling Jaya Utara MP Tony Pua over statements they were alleged to have made concerning Tabung Budi, Khalid said they would not make them change their stand on the issue.

“Syabas has no right to collect the money (subsidy given by the state government) for Tabung Budi,” he said.
Khalid had said Syabas was receiving double payment given the state was already paying the concessionaire for free water supplied to Selangor residents.
Under the fund, Syabas collects money from Selangor residents who are willing to relinquish the 20 cubic metres free water, valued at RM11.40, provided by the state government. The suits were filed at the Kuala Lumpur Civil High Court on Monday.

Khalid further contended that water concession agreements with four companies – Syabas, Puncak Niaga (M) Sdn Bhd, Konsortium ABBAS Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd – should be ended so that the water industry in Selangor could be taken over by the state government.
On the reluctance of the four to terminate the concessions because the state government’s offer to buy over the companies was not attractive enough, Khalid said they could bring the matter up for arbitration.

He said the Selangor Government had asked the Federal Government to decide on the matter as under the Water Services Industry Act 2006, the Federal Government reserved the sole right to determine the take-over price of water assets, which when decided could not be challenged in a court of law. - TheStar