12
speak up!
Watery grave for a basic right
EACH time you flush your toilet,
a few sen goes to water conces-
sionaires. Your utility bills pay for
maintaining treatment plants and
pipes and managing reservoirs
and dams.
Your water bill charges may
also have gone towards paying
for the renovation of the offices of
executives at Wisma Rozali and
their Naza Brabus cars, as well as
the RM5.1 million in allowances
for 2007 paid to Tan Sri Rozali
Ismail, executive chairman of
both Puncak Niaga Holdings Bhd
and Syarikat Bekalan Air Selan-
gor (Syabas). On top of that, since
2005, Syabas pays Puncak Niaga
a management fee of RM700,000
a month.
Is there a need for such
excesses? Well, in the words of
Rozali to the New Straits Times
on Thursday: “If Syabas wanted
a professional to run it, then they
should be able to pay for it.”
Well, let’ see how
“professionally” these entities
have been run:
» Syabas is almost RM3 billion
in debt, almost half of the total
debts of all four concessionaires;
» Three years ago Syabas
caused a furore by buying pipes
from Indonesia instead of using
Malaysian-made ones;
» Syabas started issuing
licences to plumbers where only
those listed on its panel could
conduct plumbing works for
domestic and commercial
clients;
» Syabas also ignored the open
tender requirement, where to
date about RM600 million worth
of contracts were awarded via
direct negotiations; and
» A day before one tender
closed, a new stipulation was
dictated to all tenderers – that
Laksana Wibawa Sdn Bhd and
Musa & Rahman Plastic Indus-
tries Sdn Bhd are the compulsory
suppliers for pipes and fittings.
According to the Water
Review Panel, both companies
are linked to one individual, but
that’s unfair speculation without
concrete evidence, even if the
Down2Earth
by Terence Fernandez
phone number of one company
was similar to Puncak Niaga’s.
But one wonders why the in-
structions of then Energy, Water
and Communication Minister
Tun Dr Lim Keng Yaik to review
the agreement with Syabas in
light of these revelations were
ignored.
Ah ... that’s all water under
the bridge now. Don’t worry Tan
Sri. The blood, sweat and tears of
hardworking average Malaysians
are going to be used to ensure
that the concessionaires emerge
out of the red and their executives
continue to lead the lifestyles that
they are accustomed to through
a government bailout of RM5
billion.
This may seem like less of a
deal than what Selangor is ready
to offer which is RM5.7 billion.
However, Rozali wants the state
to also absorb the concession-
aires’ debts.
It’s as simple as this: you
give me the profits of water
management but you the
government shoulder the
liabilities.
Selangor has refused to budge,
taking the moral high-ground as
to why the people should pay for
the concessionaires’ excesses
and borrowings. So, in comes the
federal government promising to
cover for the concessionaires by
allowing a staggered increase in
water tariffs, while at the same
time allowing them to operate
water services via “licensing”.
No, it was never presented to
the people as a bailout but the
fact that the federal government
offered the concessionaires an
escape clause and a deal that will
ensure they continue to reap profits
for very little investment speaks
volumes of how water deals are
skewed against the public interest
and how political one-upmanship
again takes precedence over the
people’s welfare.
A testimony to this is how
when before privatisation in 1994,
reconnection fees used to be RM10.
Today it is RM50 and since 2001
Syabas has collected RM20 million
from reconnection charges.
Just before the general election,
the federal government mandated
state-owned Kumpulan Darul Ehsan
Berhad (KDEB) to lead discussions
with the four water concessionaires
– Syabas, Puncak Niaga (M) Sdn
Bhd, Syarikat Pengeluar Air Selangor
Sdn Bhd (SPLASH) and Konsortium
Abbas Sdn Bhd – to take over water
management in Selangor.
It must be noted that at that time,
both state and federal governments
were run by the Barisan Nasional
(BN), which was why there was
no issue with the state leading the
negotiations.
Fast forward to today and
Selangor is controlled by Pakatan
Rakyat (PR) which was given until
March 31 to deal with the conces-
sionaires. However, even before the
deadline is up, the federal govern-
ment derailed negotiations.
letters
letters@thesundaily.com
Move away from coal-fired plants
THE Jimah 1400MW coal-fired power
plant in Port Dickson will change the
atmospheric conditions in Klang Valley
once it’s in operation this July.
The use of flue gas desulphurisation
(FGD), electronic precipitators (ED), and
low NOX burners doesn’t mitigate the
emission of noxious gas and particles.
FGD typically traps sulphur oxide par-
ticulates, hydrogen sulfides, and gases
through a liquid solution. These are cor-
rosive, acidic and basic gas streams. They
produce lots of polluted water so it is just
converting one pollution form to another.
Essentially, the ED attracts particles to
collection surface, and is only effective
when particles are suspended in very hot
gas. Furthermore, potential coal sludge
either replanted or spillage contains high
levels of mercury, cadmium and lead
that could lead to massive fish deaths
in rivers and contaminate underground
sources of drinking water.
Suspended particles vary in size
and composition in the air deposit-
ing in the human respiratory system.
Coarse particles matter (PM10) and fine
particles (PM2.5) are particles of health
significance because they can travel
pass the nasopharyngeal region of the
upper human respiratory tract, to reach
Govt must tackle high-rise poser
HIGH-RISE tenants are likely to face
problems with water supply in the near
future.
The Building and Common Prop-
erty (Maintenance and Management)
Act 2007 spells out that a joint manage-
ment body (JMB) will be liable for all
jointly owned properties including the
pump house, water tanks and piping in
the building. The problems start when
consumers are not fully aware of this
act and its function. In near future, it will
be compulsory for high-rise tenants to
have individual meters and pay directly
to water companies.
However, these consumers still need
The National Water Services
Commission (SPAN), which was set
up to supervise the consolidation of
water and sewerage services in the
country, decreed on Feb 18 that Pen-
gurusan Aset Air Berhad (PAAB), a
vehicle of the Minister of Finance In-
corporated, would negotiate directly
with the concessionaires, leaving the
state government out in the cold.
Point to note is that the Selan-
gor government through KDEB
and other state-owned companies
hold considerable stakes in these
concession companies. For this, the
federal government is willing to pay
RM1 billion to the state government
which still oversees raw water via
dams and reservoirs.
Another point to note is that the
CEO of SPAN, Datuk Teo Yen Hua,
who made the Feb 18 announcement
was the deputy secretary-general
of Keng Yaik’s ministry overseeing
water services at the time of Syabas’
breach. Perhaps he would like to
enlighten us as to why he did not
haul up Syabas then?
All these dear readers are a
testament to where we the ordinary
rakyat stand in the pecking order
– all the way down the food chain.
At the end of the day what all these
boils down to is that our basic human
right – the right to water – is being
caught in boardroom manoeuvrings
and political chess games.
Our water bills under the
consolidation exercise by the fed-
the lower respiratory tract, namely the
trachea bronchial region and the lung.
The World Health Organisation
tracked annual burden of air pollution
on population DALYs (daily adjusted
life years) worldwide. There are many
scientific journals linking air pollution
with asthma admissions. However, in
Malaysia, patients seeking treatment at
private hospitals and clinics are not part
of the exposure data collected for air
pollutant studies, distorting significantly
the impact of localised air pollution.
Sporadic and ad hoc research coupled
with Department of Environment static
air monitoring stations found at limited
locations can hardly attribute sources
effectively. With such limitations, obvi-
ously data are cast in doubt. The onus is
now on the residents to ensure greater
environmental awareness and protec-
tion. We can survive less on food and
water but not air.
Coal-fired power plants emit particles
that cause acid rain, smog and affect
large areas downwind. In Louisiana, coal-
fired power sources caused a high rate
of illnesses including autism because of
heavy metal concentration, some called
the area around Lake Charles and the
end of the Mississippi cancer alley.
to spend extra to maintain the rest of the
jointly-owned water supply properties.
This situation is different from landed
properties as the responsibility of the
water supply company lies up to the
individual meters or to certain distance
from the main pipe.
Now, the question is whether the JMB
which comprises residents has enough
funds to operate such jointly-owned
properties. Secondly, how will the tariff
be decided? This is because compared
to landed property owners, high-rise
residents receive fewer services while
bearing the cost of common properties
for water supply.
theSun | TUESDAY MARCH 3 2009
eral government would result in us
paying up to 31% more in tariffs.
Is this a just pricing? One doubts
especially when the determination
of what’s in the national interest is
vested in the hands of one man – the
energy, water and communications
minister.
The Water Services Industry Act
gives him a blank cheque to decide
what is in the best interest of the
rakyat, without any recourse even
in court to challenge him.
At the moment the minister has
at least argued that the long-term
intention is so that the people don’t
pay too much in tariffs. How he rec-
onciles this with Syabas’ request for
tariff increases is anyone’s guess.
He is also concerned that the
state government will not be able
to honour the concessionaires’
commitment to bond holders, while
the state government has consist-
ently argued that paramount is
what’s best for the people.
We hope that at the end of the
day, the minister will decide with his
conscience and weigh the welfare
of 22 million Malaysians over the
fiduciary interests of a select few.
Terence says like tolls, water
concessions too are weighed
heavily in favour of businessmen. He
is deputy editor (special reports &
investigations). Feedback: terence@
thesundaily.com.
Global warming calls for reduction
in carbon footprint by use of alternative
renewable energy since benefits far
exceed costs. There should be greater
focus on micro-generation to reduce
transmission distances and put a carbon
tax in place to pay for the real impact of
fossil fuels. Coal may have its cost advan-
tage but it poses far greater risk to public
health and inevitably TNB should focus
its expertise on alternative fuel capacity
building, if not at least sources of new
fuel to energise the country’s needs.
Finding secure, safe and reliable
sources of energy to power economic
growth will be one of the great challeng-
es of this century. The future of energy
is about new forms of power and the
incentive for out of the box thinking on
energy. The government must consider
the options of localised small-time in-
dependent power producers harnessing
solar or high-altitude wind, bio-energy to
produce energy at an unsubsidised real
cost significantly below that of the least
expensive coal-fired power plants, the
current benchmark of the lowest cost
source of power.
Joseph Lim
Kuala Lumpur
It is dangerous to leave the issue
as it is. If the JMB fail to collect enough
management fees, it may end up unable
to maintain the properties well. And in
many states, there are no JMBs for high-
rise buildings.
The Housing and Local Government
Ministry must coordinate with the Energy,
Water and Communications Ministry to
solve this problem. There should be a
mechanism to manage these properties
and not left to the consumers because
they bought a high-rise property.
Piarapakaran Subramaniam
Fomca Environment Desk