the blogging syed shahir

October 20, 2006

Make Public A-G’s Report Before Raising Water Tariffs, Says MTUC

Filed under: Current Affairs

PETALING JAYA, Oct 17 (Bernama) – The Malaysian Trades Union Congress (MTUC) and the Coalition Against Water Privatisation (CAWP) want the Government to make public the complete Auditor-General’s report before raising water tariffs.

MTUC president Syed Shahir Syed Mohamud said the Government should, within 30 days, make available for public scrutiny the complete report, including the scope, specifications and other details of the audit.

“The minister (Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik) also needs to indicate the experience and expertise of the Auditor- General’s Department in auditing non-revenue water,” he told reporters, Tuesday.

Lim announced on Saturday that the Government had agreed to increase water tariffs by 15 per cent in the Klang Valley but it would not affect 42 per cent of the low-income earning residents consuming less than 20 cubic metres of water a month.

Syed Shahir said the minister needs to explain to Klang Valley residents the reasons for delayed audit which cost the country millions of ringgit.

“This could throw some light into why the audit report was delayed by 10 months in contrast to the dictates of the concession agreement.

“It could have saved the government and tax payers millions of ringgit. The compensation payment to Syabas (Syarikat Bekalan Urus Air Selangor) of RM152 million could have been better used to serve the people,” he said.

Dr Lim had said the government still had to pay compensation to Syabas this year as they were supposed to get tariff hike in January after meeting the requirements.

Syed Shahir said the concession agreement ensured that Syabas would secure its profit either through a tariff hike or through government compensation, or both.

“It is most disturbing that “architects” of the concession agreement made sure Syabas is well rewarded,” he said.

He said MTUC and CAWP want the federal and state governments to re-examine the concession agreement which certainly favoured Syabas.

Syed Shahir also said the ministry had to credibly demonstrate how it concluded that 42 per cent of Klang Valley residents use less than 20 cubic
metres of water and thus would not be affected by the water tariff hike.

He said a 15 per cent tariff increase would give an additional RM100 million in pre-tax profit to Syabas.

Syabas is 70 per cent owned by Puncak Niaga and the remaining 30 per cent by the Selangor Government. — BERNAMA






















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