SHAH ALAM, 10 Mar: The Selangor water industry restructuring main agreement has expired on its owned following the refusal of the federal government to respect the principles and spirit of the previous agreement.

The Chief Minister, Mohamed Azmin Ali, said that the state government is disappointed because it has failed to proceed as it should have.

“As announced when I took over the duties and responsibilities as the Chief Minister of Selangor in September last year, this administration is ready to honour all agreements signed.

“However, this administration cannot allow the implementation of an agreement that is contrary to the principles and spirit agreed upon.

“The contradiction of the main agreement that is being tried to be implemented by the federal government will witness the state government losing its sovereignty over the land and water assets owned.

“I am sure that the people and the water consumers will support the stand taken by the state government because the issue of land and water asset ownership sovereignty is not something that can be handed over with impunity,” he said in a press statement today.

However, Mohamed Azmin said that the state government is prepared to discuss if the federal government agrees to acknowledge the sovereignty of the land and water assets owned by Selangor and does not make demands that are contrary to the spirit of the agreement that was signed on September 12, 2014.

The failure of its implementation was due to the latest stance by the federal government that refuses to respect the principles and spirit of the main agreement which is to acknowledge Selangor’s water asset ownership amounting to RM14.9 billion that will be injected into Pengurusan Air Selangor Sdn Bhd (Air Selangor).

It is necessary to acknowledge and accept the transfer of RM2 billion from water assets owned by Air Selangor for the purpose of providing funds to the agency to acquire all water concessionaires in Selangor and the issue the Utility Licence to Air Selangor in recognition of the ownership of all remaining water assets owned by them.

The federal government also needs to approve the signing of the utility and lease agreement between Pengurusan Aset Air Berhad (PAAB) and Air Selangor for the lease of the water assets that will be transferred to PAAB.

Consequently, he said, the state government will continue to monitor and ensure that the water supply in Selangor can be continuously supplied to all consumers as announced on March 5.

NS