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The Selangor government has accused National Water Services Commission (SPAN) chief executive officer Datuk Teo Yen Hua of pandering to the interests of four private concessionaires in the dispute over the restructuring exercise in the state.

Mentri Besar Tan Sri Khalid Ibrahim said Teo’s move to negotiate directly with the four concession companies was inconsistent with the federal government’s decision on Jan 16 last year, allowing the state government, through Kumpulan Darul Ehsan Bhd (KDEB), to take over the operation and maintenance of water assets from the concessionaires in a joint exercise.


“It would subsequently enter into a sale and leaseback of the water assets from Pengurusan Aset Air Bhd (PAAB). The state had made all efforts to ensure the restructuring exercise is completed in a manner that benefits the people of Selangor and Kuala Lumpur,” he told a press conference in the parliament lobby yesterday.

Khalid said the state government questions SPAN’s decision on a matter that falls under the jurisdiction of the Energy, Water and Communications Ministry and “we believe this is inconsistent with the Water Services Industry Act”.

“It is also not consistent with the provisions of Section 191(4) of the Act that require the concession companies to negotiate with both the federal and state government,” he said.

On Wednesday, Teo announced that SPAN could no longer afford any further delay as the water tariff increase of 31% was supposed to come into force on Jan 1 but was delayed as the federal government had given Selangor up to Feb 14 to negotiate and acquire the assets of the concession companies and there has been no response from the state.

The concessionaires are Puncak Niaga Holdings Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abbas Sdn Bhd (Abbas) and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH).

Khalid said: “Instead of supporting the state government’s initiative to buy back these water concessions in the interest of the people with a fair and reasonable offer, Teo appears to be pandering to the interests of private concessionaires.”

The state government believed SPAN’s decision will have deep negative implications on the people.



Khalid said the state government assures that it will protect public interest through all available means and ensure the people are provided with affordable and treated water.