Splash suing Syabas, not state govt, explains Azmin (Updated)

GOMBAK: Datuk Seri Mohamed Azmin Ali has laughed off claims that Selangor would go bankrupt if it fails to pay off Syarikat Pengeluar Air Sungai Selangor Sdn Bhd's (Splash) RM4.22 billion legal suit against Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

The caretaker Selangor Mentri Besar explained that the lawsuit was directed at Syabas directly, and not the state government, and would not involve the state consolidated fund as claimed by state Barisan Nasional (BN) chairman Tan Sri Noh Omar.

"This once again proves that they (BN) lack leaders who understand the state and federal economic and financial issues.

"The one being sued is Syabas, not the state government. Splash sues Syabas, so of course Syabas is the one who would take the necessary measures to defend its position in court later.

"But at the moment, there's no relation with the state government and the consolidated fund. So can you please explain this to the minister?" he told reporters after the ground breaking ceremony of the Kampung Sri Temenggong Rumah SelangorKu, here, today.

A total of 668 units from two phases will be built under the project, with the first phase expected to be completed by 2021.

Noh, on Sunday, questioned Azmin's silence over the water issue, adding that the state was at risk of bankruptcy as the state's reserves is only RM3 billion while the claim filed against Syabas is RM4.22 billion.

Splash, in a stock exchange filing on April 9, said it was suing Syabas for RM4.22 billion in outstanding receivables owing to the company, excluding interest and costs.

Azmin also rebuked a local Malay daily for a recent report it made accusing the Selangor State Development Corporation (PKNS) of straying from its original objectives of assisting the people of Selangor.

Insisting that PKNS remains true to its goals, the PKR deputy president said this could be proven by the number of low-cost, medium-cost and affordable housing it has built over the years.

"Of the total 160,258 units in 11 townships PKNS has built, 41% are low-cost, affordable housing and 46% medium-cost. That means only 13% are high-cost.

"These facts can be used to rebut claims by some quarters that PKNS has strayed from its goals," he said.