A Business as Usual ‘RM 33.4 Million Remuneration Package’for Puncak Niaga’s Tan Sri Rozali Ismail?
In all these years of debt, bailout and inefficiency, Rozali’s remuneration increased. In 2009 he was paid RM14 million, in 2011 he received RM8.35 million and in 2012 he took home a whopping RM33.4 million.
Charles Santiago
Tomorrow, the Federal Court will hear a landmark case lodged by the Coalition Against Water Privatisation (CAWP). The case seeks to compel the federal government and Syarikat Bekalan Air Selangor Sdn. Bhd (Syabas) to publicly disclose their 2004 agreement and audit report that justified a 15% hike in water rates.
While on one hand this case marks a significant milestone for the raykat’s access to information and transparency on the issue of water management, on the other hand, it seems to be business as usual for Puncak Niaga.
On 26 June 2013, shareholders of Puncak Niaga Holdings Berhad, which owns 70% of Syabas, learnt that its Executive Chairman, Rozali Ismail, would receive a RM20 million gratuity as part of its remuneration package.
Also, Puncak Niaga extended Rozali term as the Executive Chairman for another five years. This raises questions on the purpose of the gratuity payment in the first place.
This is because:
(1) At a time when the management of water in Selangor was facing a water “crisis” due to Puncak Niaga’s and Syabas’ incompetence, its directors were being rewarded handsomely. RM20 million could be used to upgrade and better maintain Puncak Niaga’s and Syabas’ infrastructure, and to reduce non-revenue water (NRW);
(2) When the company was in dire straits at the end of 2011, the federal government, via the wholly owned subsidiary of Pengurusan Aset Air Bhd (PAAB) – Acqua SPV Bhd, bailed out Puncak Niaga by acquiring its RM328.12 million debt instrument.
(3) Of the numerous preferential loans given by the government, such as the RM320.8 million back-loaded interest free unsecured soft loan given in 2009.
It is no secret that he was the treasurer of UMNO Selangor, while the chairman of Puncak Niaga’s remuneration committee, Ahmad Fuzi Abdul Razak is also an UMNO member. Furthermore, he sits on the International Affairs Bureau of the UMNO Supreme Council.
The remuneration committee also includes Dr Ting Chew Peh, who is the former MCA Secretary-General.
This is clearly a text-book example of using political cronies to take home a fat remuneration, or in this case, a gratuity payment.
I call upon the Suruhanjaya Perkhidmatan Air Negara (SPAN) to investigate 1) whether public funds were used to enrich politically linked individuals i.e. gratuity package; 2) and if it constitutes an abuse of public funds as Puncak Niaga is a recipient of state loans and bailouts and to take the necessary actions.
Co-ordinator of Coalition Against Water Privatisation (CAWP).