Wednesday, April 1, 2009

Selangor Plans Legal Action If Water Tariff Raised

PETALING JAYA: The Selangor state government intends to seek legal action if the Cabinet today decides to increase the water tariff.

The state claimed that the necessary pre-requisites for a tariff increase by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) under the concession agreement were unfulfilled.

“Material deficiencies were found in the last audit, the cumulative effect of which undermines the validity of the request by Syabas,” the state said in a press statement yesterday.

Complaints of Syabas’ “highly unsatisfactory” services were sent to the Ministry of Energy, Telecommunications and Water, together with a request that the concession agreement be terminated, it said.

However, the minister has yet to take action against Syabas and, instead, indicated that a licence would be issued to the concessionaire to continue its operation.

“This decision not only goes against the declared intention of the Federal Government to restructure water services in Malaysia but also the public interest,” it added.

It was reported that the ministry would propose to the Cabinet today on the tariff increase – as much as 31% for consumers in Selangor, Putrajaya and Kuala Lumpur.

Source: TheStar

-------------------------------------------------------------------------------------------------
The Water Tariff hike is definitely going to burden the people if allowed. The chain reaction is unavoidable since we use water daily.

No comments: