Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui has described the accusation by DAP National Publicity Secretary Tony Pua that the federal government had bailed out Syarikat Bekalan Air Selangor (Syabas) to the tune of RM3.41 billion as nonsense.
In denying Pua's "twisting of facts", Chin said as far as the water industry was concerned, the federal government had never bailed out any party but it had an inherent duty to take care of the people, especially on the crucial issue of adequate water supply.
"As far as it's used by the rakyat and as far as the development of the country is concerned, it remains as the federal government's top priority. That's why you have a ministry that is dedicated to (the issue of) water," he said.
Pua, the DAP MP for Petaling Jaya Utara, said on Monday that the additional RM120 million allocation for upgrading water facilities announced by Prime Minister Datuk Seri Najib Razak last week had further pushed the amount of bailout funds from the federal government to RM3.41 billion in just four years.
Chin said the federal government had never taken over the bonds issued by Syabas along with three other concessionaires -- Puncak Niaga, Syarikat Pengeluar Air Sungai Selangor ( Splash) and Konsortium Abass.
Instead what it did was to buy over on a "willing buyer, willing seller" basis from the bond holders, which comprised some leading corporate institutions.
This was done solely because of the failure of the present Selangor government to pay compensation to Syabas as provided for under the concession agreement, which in turn caused problems to Syabas in paying for the purchase of treated water from Puncak Niaga, Splash and Konsortium Abass.
Chin explained that due to this, the bond issuers could not fulfill their obligation to pay dividends to bond holders who, prior to 2008 when the Pakatan Rakyat took over the Selangor government, had been getting good dividends.
The federal government's intervention had eased concerns in the bond market while protecting the interests of bond holders and more importantly, the security of water supply.
"Should there be a default, the bond holders can resort to taking legal action which eventually will disrupt water supply.
"When you have a situation concerning water security for use by the rakyat and for the development of the Klang Valley, which is our most developed region, and the economy, we cannot do anything to jeopardise this. The federal government has been committing and will be committing its resources to ensure that water security is there," Chin emphasised.
He said the federal government's move was not a bailout because it did not in any way free the four concessionaires from their financial obligations as bond issuers.
"Tony Pua's allegation is going too far. Its twisting of facts certainly. I hope that he will not keep on repeating it because it is not truthful."
On the RM120 million allocation that the prime minister announced, he stressed that was absolutely necessary because the Selangor government was consistently blocking efforts by Syabas to upgrade water facilities to meet rapidly increasing demand.
This allocation for upgrading works, as in all expenditure on water related operations throughout the country, will be monitored by National Water Services Commission (SPAN).
If the federal government had not come in, there would be insufficient funds to allow certain facilities to be maintained and upgraded, and to prevent Selangor, Kuala Lumpur and Putrajaya from experiencing water shortages.
Last month's water shortages faced by some 500,000 people in parts of the Klang Valley could be repeated and this was not something that the federal government would want to see happening again.
The minister reiterated the source of the recent water disruptions was basically the Selangor government's persistency in disrupting the capital expenditure (capex) needed by Syabas in accordance with the provisions of an agreement.
"That is very clear, whatever is needed to upgrade facilities on capex, the Selangor government is obstructing such expenditure by Syabas."
Chin said had the Selangor government adopted a cooperative and reasonable attitude towards the federal government to ensure water security, the most densely populated and most developed part of Malaysia would not have suffered from insufficient water supplies as experienced recently.
"It's such an anomaly. Both the Selangor government and federal government must work together on this essential service. Water is such an important aspect of any country's development.
"From my very first day in office as minister, I have made the issue of water security as my top priority," he said.
Bernama
Fri Feb 08 2013
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
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.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
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.