The controversial RM33.4 million remuneration package given to Puncak Niaga Holdings Bhd (PNHB) executive chairman Tan Sri Rozali Ismail must be investigated, said DAP today.
DAP publicity chief Tony Pua urged the National Water Services Commission (SPAN) to take all necessary action to investigated this “payout” in order to protect the interest of Malaysians.
The Petaling Jaya Utara MP also called on the Ministry of Energy, Green Technology and Water must also stop all extraordinary and non-operational payouts in water concessionaires.
On Wednesday, Klang MP Charles Santiago questioned the RM33.4 million remuneration, which included a RM20 million retirement gratuity, given to Rozali in 2012 for his services.
The revelation on the remuneration last week invited criticisms against the company, which is the majority shareholders of Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), the concession which manages water in the Klang Valley.
However, Syabas has defended itself against the attacks and is considering legal action, while a report in The Malay Mail quoted minority shareholders, Puncak Niaga (PNHB) Minority Shareholders Watchdog Group (MSWG), as saying that the amount was “deserved” and was approved in the company’s annual general meeting on June 26.
Pua expressed shock that the group would defend the remuneration package, given that the company has allegedly not been doing well financially in the past five years.
“On paper, PNHB recorded a net profit of RM233 million for the financial year 2012. However, it should be highlighted that PNHB achieved profitability only because it recognised a RM1.02 billion ‘water tariff compensation’ from the Selangor State Government,” said Pua.
This compensation, said Pua, was never agreed to by the Selangor government because PNHB and its subsidiary, Syabas, “failed to fulfil its obligations under the water concession agreement|.
“The failure includes but is not limited to SYABAS’s failure to repair and replace aging pipes, and consequently to reduce the percentage of non-revenue water in Selangor,” he said.
The amount was also being disputed in court and Pua argued that it should not be recognised as “revenue” for PNHB in the first place.
If the Selangor state compensation was removed from the equation, Pua said that PNHB would have made massive losses of up to RM791 million.
“Given such underlying performance in the company, does the PNHB-MSWG really believe that Rozali fully deserves the RM33.4 million payoff?”
“In fact under normal circumstances, they should logically be calling for the company’s top management to be axed, and not in this case, lucratively rewarded!”
Pua said in 2011, PNHB made net losses of RM83 million, despite recognising RM458 million in “water tariff compensation”, meaning total losses without the “compensation” would have been as high as RM541 million.
Going back further, PNSB made losses of RM92 million (2010) after recognising “water tariff compensation” of RM419 million (2010), he said.
Teoh El Sen
Fri Jul 05 2013
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.