Water concession agreement 'top secret'
Fauwaz Abdul Aziz
Dec 8, 06 4:20pm Adjust font size:
 

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The concession agreement for the supply of water in Selangor as well as the government audit report on Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) will not be disclosed to the public, the energy, water and communications ministry has decided.

In a recent letter sent to the Malaysian Trades Union Congress (MTUC), the ministry said the agreement between the federal government, the Selangor state government and Syabas was ‘secret and confidential’.

The letter from the ministry’s Water Division Secretary Japar Abu, faxed on Dec 5 to MTUC secretary-general G Rajasekaran, also said the auditor’s report on Syabas was similarly classified as secret.

In his letter, Japar Abu said there was no need to disclose the auditor’s report to the public as it ‘had already been presented to the cabinet and approved’.

MTUC and the Coalition Against Water Privatisation (CAWP) had on Oct 17 asked the government to make public the water concession agreement between Syabas and the state government, and the audit report on Syabas.

This followed an announcement three days earlier of a 15 percent increase in Selangor’s water tariff.

Debate report

Minister Dr Lim Keng Yaik who made the announcement, said the increase was provided for in the concession agreement and was due to Syabas’ ‘success’ in reducing by five percent water stolen or lost through leakage (non-revenue water [NRW]).

Japar, meanwhile, said the government audit report "confirmed that Syabas had reached its target of reducing NRW by five percent and thus qualify for the tariff increase that took effect on Nov 1, 2006".

Groups concerned over water management are, of course, fuming.

CAWP co-ordinator Charles Santiago said the non-disclosure by Lim’s ministry in the matter belied premier Abdullah Ahmad Badawi’s proclamations of a transparent and accountable government.

“It creates doubts as to the intentions of the minister and his ministry. This report should be debated and discussed by all concerned,” Santiago said when contacted.

“The government should either abide by its own call for transparency and good governance, or it should admit defeat and stop talking about it.”

‘Show us why’

Santiago had earlier questioned the need for the tariff increase given that the government had paid RM2.9 billion to Syabas in various grants and loans to provide water supply. Of this, RM215 million was for Syabas to reduce NRW.

Santiago noted that Syabas had raked in a profit of RM200 million last year and is set to receive an additional RM100 million in pre-tax profits from the tariff increase.

“People are not objecting to paying for their water. They just want to know the reasons why it (the tariff) has to go up,” he said.

Santiago also said the people want to cross-check the government audit report against an assessment by independent auditors and water management experts.

“We want to know the experience and expertise of the auditor’s department in the management and auditing of water supply and NRW,” said Santiago.

Tengku Nazaruddin Zainuddin, of the All-Petaling Jaya Pro-Action Committee (Appac), said whatever concerned the rakyat should be disclosed to the rakyat.

“If what we say about the water tariff is wrong, then come out and tell us and show us why it is so,” said Nazaruddin, who heads Appac’s condominiums, apartments and high-rise owners sub-committee.