Govt invokes Water Services Act, Selangor to take over water companies

PETALING JAYA: In an unprecedented move, the federal government has decided to invoke the Water Services Industry Act 2006 (Wasia), including Section 114, that pave the way for the Selangor government to take over the water concessionaires in the state.

This is the first time that the Wasia has been invoked since the Act was passed on June 1, 2006. Under Wasia, there is a provision for step-in rights whereby the minister may, if he thinks it necessary for national interest and with the prior approval of the federal government, direct the National Water Services Commission or Span to assume control of the operations of a licensee, and carry on or appoint others to carry on the licensee’s operations.