PETALING JAYA: It is “premature” to invoke Section 114 of the Water Services Industry Act 2006 in the takeover of Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), says the Government.
Energy, Green Technology and Water Ministry secretary-general Datuk Seri Dr Zaini Ujang said it was too soon to invoke the Act, as the acquisition of Splash by Selangor had not been completed yet.
Section 114 of the Act allows the minister in charge to take over control of a concessionaire’s licence if it is of national interest.
“The state government has yet to offer a price for the takeover process. Thus, the negotiation of the value has not been completed and the acquisition process has not started.
“In this regard, to invoke Section 114 is premature. It needs to be used impartially and with due care,” Dr Zaini said in a statement yesterday.
He said the Act only enabled the National Water Services Commission (Span) to manage assets and carry out the business of the licensee to continue supplying water to the public.
Dr Zaini was responding to a press report quoting Association of Water and Energy Research Malaysia president S. Piarapakaran as saying that the Selangor government should write to the minister to invoke Section 114 to complete the takeover, should it fail to complete fair negotiations with Splash.
Piarapakaran reportedly said that if the minister failed to initiate the takeover, the Selangor government could seek a judicial review to compel the minister, his ministry and Span using the Act.
The Splash takeover by the state government was due to be completed on Oct 7 last year, but was postponed twice.
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