Media statement by Lim Guan Eng in Komtar, George Town on Tuesday, 31^st May 2011: 

BN Penang in breach of confidentiality and secrecy of National Water Agreements worked out between the Penang State Government and the Federal Government 

The Penang state government regrets that BN Penang has chosen to score cheap political points by publicising details of a national water agreement worked out between the Federal and state government. Such agreements are secret in nature and highly confidential, as only either the state or the Federal government have the right to disclose the details of such an agreement.

State Barisan Nasional (BN) working committee chairman Datuk Dr Teng Hock Nan appears to have forgotten that he is no longer the Penang state government. Has Teng forgotten he was rejected by his Pulau Tikus voters and lost in the last general elections? He is also not holding any Federal government position. What right and on whose behalf is he representing in making such announcements that should only come from either the Federal or state government?

Negotiations over the terms of the water agreement were concluded two months ago and awaiting the approval of the Cabinet. The signing ceremony has been fixed in Putrajaya this Thursday on 2 June 2011 between Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui and myself. If anyone should make any disclosure it should come from either Peter Chin or the state government not Teng who has no locus standi whatsoever. It is unbecoming and irresponsible for Teng to behave as something that he is not when he is now neither a state EXCO member nor a Federal government official.

The Penang state government was initially reluctant to accede to the migration of the state's water assets to the Pengurusan Aset Air Bhd(PAAB) under the Federal government. However as Chairman of Perbadanan Bekalan(PBA), I had no choice but to find a solution as the previous BN state government had agreed to surrender the state¡¯s water assets to the Federal government under the Water Services Industry Act 2006.

Accordingly, the Penang PR state government insisted that the some of the terms of migration of water assets be improved on what was originally proposed. Amongst them as mentioned by Teng, was the construction of the RM1.2 billion Mengkuang dam to increase water capacity in the state by 3.8 times. Under the previous BN administration, this RM1.2 billion was to be an interest-free loan.

The Penang PR state government had insisted that the interest free loan of RM1.2 billion be converted into a grant as a condition for the migration of water assets to be speedily carried out. After the expansion of the dam is completed, the dam would still belong to the state government. This was finally agreed to by the Federal government.

Teng was again not truthful in saying that the state government should answer the details of the RM1.2 billion dam expansion project. As the RM1.2 billion is federal government's money, the Federal government decides how this is spent such as who to give and whether there should be an open tender or not.

Instead of praising both the Federal and state government for agreeing to convert an interest-free RM1.2 billion loan into a grant, which is definitely beneficial and better for the people of Penang than the terms previously offered, Dr Teng had chosen to politicise the deal by claiming that BN had never marginalised Penang despite losing the state. Why did Teng not give credit where credit is due by noting the success of the PR state government in converting a RM1.2 billion loan into a grant?

I shall be disclosing other improvement in terms for the Penang state government later. I regret that Teng and Penang BN has again acted unprofessionally and irresponsibly by breaching the secrecy and confidential nature of the agreements merely for political publicity. I shall be directing state government officials to enquire with the Federal government whether the details of such an agreement between the federal and state government are revealed to rejected BN politicians who hold no official positions.

*Lim Guan Eng, Penang Chief Minister