The Federal Government must answer why it is holding up the Selangor water restructuring process. Both the Selangor government and Selangor consumers are tired of the delay tactics. Is there a political agenda behind this, or is the Federal Government in financial trouble?
Ahead of a scheduled water interruption tomorrow for repair works at the SSP3 Plant, Federal-linked sources are trying to deflect the blame for the delay in the state water restructuring process onto the Selangor government. In fact, it is the Federal Government, not Selangor, that is holding things up. But we must be told why.
The Selangor government’s plan is to consolidate the state water industry under a single publicly-owned operator that will lead to efficient, effective, competitive and sustainable service.
Under the terms of our national water policy the federal government is supposed to finance the purchase of water assets to help the states. This process has been partially completed in Selangor. An independent valuation for the remaining water assets was submitted by the Selangor government to Federal authorities and tabled before Cabinet in May 2017.
The Federal Government has also done its own valuation on the water assets, yet they insist on asking the state to name the price. This is nonsensical since the Federal government will be the buyer. The ball is very clearly in the Federal government’s court.
The Cabinet decision on completing Selangor’s water restructuring was pushed back from May to October 2017, now to later in 2018.
This excessive delay on the part of the Federal Government begs a question. Is it part of a political ploy to cause suffering to Selangor consumers and embarrassment to the state government ahead of elections? Or is it a symptom of a deeper problem with Federal finances?
A recent report in the Straits Times (16/2/18) revealed that the amount of interest paid to service debt by the Federal government is some RM 31 billion, equal to its entire income tax collection or two-thirds of GST revenue, and more than double the amount paid in 2009. Is there insufficient federal money to fulfill the national water policy and complete the restructuring exercise?
The Federal Government must come clean on its failures instead of blaming the state governments that it is supposed to help. Water is the people’s right, not a political football.