Feb 9: The Selangor state government reiterates its stand to restructure the water services sector to benefit consumers in Selangor, Kuala Lumpur and Putrajaya.
As such, the state government said it backed the Water Services Industry Act (WSIA) 2006 to better manage the water industry, and urged the Federal government to expedite its implementation.
“The state government is now ready to implement WSIA and is awaiting the Federal government to make a professional decision for the sake of the 5 million water consumers in Selangor, Kuala Lumpur and Putrajaya,” reads a statement issued by the office of the Selangor Menteri Besar Khalid Ibrahim.
It pointed out that the WSIA recognised the weaknesses of privatisation, citing the failure of appointed private firms to deliver quality water infrastructure at reasonable costs.
Syarikat Bekalan Air Selangor (SYABAS), it said, was unfit to be retained as the state water services operator saying it violated “many obligations under the concession agreement” such as reduction in non-revenue water, sustainable and continuous pipe replacement, unauthorised collection of funds through its so-called 'Tabung Budi' and refusal to work with appointed state auditors.
Last weekend, former Selangor MB Mohomad Khir Toyo denied reports that he was responsible in giving away the state’s water services to SYABAS following a water crisis in Selangor and Kuala Lumpur.
“It was the Federal government which gave 30 year-contract to Puncak Niaga Sdn Bhd which then appointed SYABAS to run it. I was not involved as it was the Economic Planning Unit (EPU) which awarded it to Puncak Niaga,” he said.
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