Friday, February 20, 2009

Bailout of Water Concessionaires Begins

Almost as if on cue, the Federal Government has dismissed the Selangor state government's attempts to return the rights of cheap water and efficient water supply to the people of Selangor and Kuala Lumpur.

Two days ago, National Commission of Water Services (SPAN), on behalf of the Ministry of Energy, Water & Communications, surprised the state and the public by declaring that the Federal Government will unilaterally proceed to negotiate with the water concessionaires in the state directly, by-passing the state.

The CEO of SPAN, Dato Teo Yen Hua (one of those behind the failed original water privatisation exercise which screwed Malaysians throughout the country in the first place) gave some flimsy excuse of an alleged non-existent deadline which was missed by less than week, acting almost like a lackey for the concessionaires.

This came while the state government was still waiting for a response from the respective concessionaires on our earlier buy back offer. In fact, the SPAN U-turn trespasses the constitutional rights of the state and the Menteri Besar, Tan Sri Khalid Ibrahim rightly rapped SPAN and demanded that Dato 'mischievous' Teo declare his interest in the matter.

It was a clear attempt at sabotaging the state negotiations as the concessionaires will clearly reject the offers by the state as they know that the Federal Government will definitely pay much more money to take back their concessions!

Unsurprisingly, as if on cue, these concessionaires rejected Selangor's offer today (Puncak Niaga & Syabas here, Gamuda & Kumpulan Perangsang here) while obviously twiddingly their thumbs and licking their lips for a much more lucrative offer from the BN Government to line their pockets.

As highlighted in my earlier post, the Minister in this case has near absolute powers to determine the outcome of the restructuring exercise. It now appears that he will not use these powers to protect the rights and interests of the rakyat, but instead abuse it only to enrich and bailout the water concession cronies. The country is getting raped twice, right before our very eyes.


Anonymous said...

It is clear and loud that Barisan Nasional is not looking after the rakyat like you and me.

Barisan Nasional is only looking after their Rich Cronies like Rozali Ismail.

Who the hell is he ? Cannot stand TV3 anymore to give Rozali Ismail some airtime just to clarify why they reject the deal. Full of craps.

Anonymous said...

They will look after the rakyat, only if miracle happened. :)

Anonymous said...

Why is the Federal Government interfering in state affairs? Please dig out all the dirt from these shady characters and expose them quick before we are raped again.

Anonymous said...

But seriously the annoucement made by Puncak in reply to the State Offer seems to point that the State did not enough of homework and to certaint extent reflect some sloppiness of the State advisors in these exercise.

Extract from Puncak Niaga's announcement

" 1. Pursuant to Section 192 of the Water Services Industry Act 2006 (“WSIA”), PNSB is only given the option to either send a notice to Suruhanjaya Perkhidmatan Air Negara (“SPAN”) on its intention to apply for a licence under WSIA in substitution of the registered existing licence or apply for authorization. PNSB’s Board has in principle agreed to migrate to the licensing regime since it is in line with the Federal Government’s policy to restructure the nation’s water industry...."

"2. The offer is unclear as to whether it is to acquire PNSB or the assets of PNSB. If the offer price is for the assets of PNSB, the amount is insufficient to settle the outstanding borrowings and other liabilities of PNSB. PNSB’s lenders will most likely not grant approval on the offer since not all liabilities of PNSB will be fully discharged...."

" 4. As the assets of SYABAS are charged to a financial institution and the bondholders, SYABAS is required to obtain their prior approvals for the disposal of the assets. In view that the offer price is insufficient for SYABAS to repay all of its borrowings, it is anticipated that such approvals will most likely not be obtained."


a. Your MB seems to misled us to believe that there is ONLY one option for the take over. But from the announcement above, Puncak quoted Section 192 of WSIA.

b. if you dont address the bondholders concern, what make you thing the State Offer is reasonable.

Khalid runs public company before, how can he missed this unless he has other reasons doing these.

As always mention, governing and opposing is very different. Hope PR will learn from this episode before the BN/UMNO attacked on the competency of PR.

Anonymous said...

Can state govt. sue these cronies basing on the quality of water supply to ppl who pay water charges basing on certain qulity standards.?

Anonymous said...

appretice, what's your point? you saying that the right price is a price that pays off the debts of puncak niaga?

wow, i have debts too, i will sell some mismanaged assets to you and you pay me exorbitantly for ok?

this is about a fair price for a social good which the federal govt and WSIA is supposed to protect. do you price a stolen asset..i.e. an asset that doesn't actually belong to you?

Anonymous said...

Under normal circumstances, the issue of "Bailout" does not arise...Because it's Not a Government's Failure..or A Failed Policy..let alone to say An Appeal to the Government By A Failed (For Public Interest) Public Corporatisation Rescue Plan/Exercise....! It's merely an OFFER given(To Buy Back A Concession in compliance with the Agreement due to known/unknown reasons) by the Policy Maker (Government previously or presently)...when the "Implementators"(The Board/ Management)..were/are not acting in accordance to the Agreement...!
That's wholly and exlusively "AN ISSUE OF CORRECTION FOR THE MISDEED & MISMANAGED & WRONGFUL ACTS " to be RECTIFIED & JUSITFIED in the interest of Rakyat Malaysia..instead of the few selected cronies..AT THE EXPENSE OF RAKYAT MALAYSIA..regardless of WHO/HOW manipulating through the Suffering for Rakyat via Government's Privatisation Policy..! Truthfully,if the OFFER is far below the DEBT & you think the Respective Concessionaire will willlingly direct The Board/Management to accomplish the WHOLE DEBT & LOANS..EVEN IF the company making milion of billion bucks in profit..? Only God will do it...!

"BUY-BACK" OR WHATEVER IT IS may be the ANSWER for Malaysians & Next Generations...for correcting this WRONGFUL& ABUSIVE ACTS..LEGALLY..!The Question now is "HOW-MUCH..&..WHEN.."..IS THE RIGHTFULLY TIME & MONEY..BY RAKYAT.MALAYSIA..!

Anonymous said...

Surely they will want to negotiate with the bn compare to PR. Never did they imgine that S'gor will fall to PR. So now maybe before the bn federal govt fall later on, quickly make the fat deal and fly off to somewhere.

Anonymous said...


if the bondholders make a hash in valuing the assets of the concessionaire, too bad aint it?
these bondholders together with the merchant banks think that the rakyats pockets are bottomless. They can fantasise with all the discounted cash flows with all the airtight increase in price but there is a limit where they can screw the common people. The people have spoken and thats why they have kicked out the corrupt govt from the 5 states.
No, I support Khalid. If possible, lets boycott paying our water bill for 6 months and lets bankrupt Puncak.
By the way, did you know that Puncak has sceuritise the assets to pay a fat dividend to the shareholders priro to this exercise? Let the bondholders be damned.

Anonymous said...

By the way, That Zam Zam Ali KeZam pleading Perakians to accept him as MB. He even said that we would come to our senses one day

People do have short mrmory. Hence, I say no way Jose.

We would hereby haunt you like bulldogs till you and your gangs completely expunged from Perak. Just like Khir, we would highlight every single bad policies. We will sabotage through whatever constuitional means

To Karpal,
This is no time to be chivalry. You are no Neldson Mandela. This is not South Africa & your opponent is no FW De Klerk. He's more of Idi Amin or Nazi Adolf Hitler

Watch Valkyre the show! Of course, no to that extend. Just as the brigadier general kenna trapped in Bastogne During Battle of Bulge.

To Zam Zam Ali KeZam,

You wanna be MB Perak. Nah! Nuts! I am absolutely sure that you have shown "Nuts" to Siva else he would send you & the goons