What is the dispute between the Selangor government and the federal government over water supply and distribution in the state all about?
Essentially, the state government wants to take over water operations in the state because it feels that the politcally well-connected private firm Syabas has been inefficient and not complied with the terms of the concession agreement. The federal government could well bail out Syabas – with public funds. The Selangor government is also against Syabas’ plan for a 37 per cent tariff hike.
It all began under Mahathir’s ill-conceived privatisation policy. The website airuntukrakyat goes on to explain:
• Starting in 1997, BN privatised the various water companies in Selangor.
• Since then, Syabas and the others have exploited the people by draining them of hundreds of millions in cash.
• At present, the Selangor State Government wishes to return the right to control these companies back to the people.