Selangor blames Putrajaya for Splash takeover delay

SHAH ALAM: Selangor has put the blame on the federal government for the delay in finalising the state's acquisition of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
Mentri Besar Datuk Seri Mohamed Azmin Ali said this was following the Energy, Green Technology and Water Ministry's (KeTTHA) order for the restructuring of the Selangor water supply industry to be extended for a further six months.
This was in addition to an earlier extension by the ministry from October 2016 to April this year in order to facilitate the appointment of an independent valuer, he said, despite having no details of the appointment and valuation to date.
"We received a letter from KeTTHA on March 14, directing all respective quarters to extend the restructuring of Splash for a period of six month to Oct 5, 2017.
"It is clear that the delay in the acquisition of Splash is not due to the state government but the extension period that was suggested by the federal government to allow the Cabinet to appoint an independent valuer," he said in the state legislative assembly, here, today.
However, the Bukit Antarabangsa assemblyman said the state government has agreed to the extension to allow the federal government to look at the valuation report.
Azmin also assured that Selangor would not bear any of the cost due to the delay in the takeover.
He added that the state government was also shocked to receive another letter by KeTTHA on March 6 asking that Selangor bear 40% of the total cost of the acquisition, arguing that it should be
financed fully by the federal government.
"KeTTHA's decision is premature, considering the state government has not received an official stand from the Cabinet on the independent valuer appointed by the federal government," he said.
Splash is the last pending water asset under the Selangor water restructuring exercise.
Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abbas Sdn Bhd sold their water assets for RM2.47 billion, RM3.11 billion and RM990 million, respectively.
A memorandum of understanding signed between Selangor and Putrajaya in February 2014 stated that the state would take over the four water concessionaires operating in the state.