Gov’t to use Section 114 Act 655 if water agreement not finalised on July 4

(Bernama) – The federal government is ready to use Section 114 of the Water Industry Act 2006 (Act 655) should the main agreement on the takeover of the water concession between the Selangor state government and Syarikat Pengeluaran Air Selangor Sdn Bhd (SPLASH) not be finalised on July 4.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the decision to use Section 114 was made on the basis of national interests and to ensure the frequent water supply disruption in Selangor, Kuala Lumpur and Putrajaya is resolved.

He said so far, the Selangor government had yet to submit a price offer to take over SPLASH.

“The main agreement has been extended for the third time on July 4, 2018. As such, there is still no pressing need to take enforcement action under Section 114 Act 655 to finalise the restructuring of the water services industry in Selangor, Kuala Lumpur and Putrajaya,” he said.

Ongkili said this when replying to a question from Tan Sri Abdul Khalid Ibrahim (Independent – Bandar Tun Razak) during the question-and-answer session at the Dewan Negara sitting, here today.

Under Section 114 Act 655, the federal government via the National Water Services Commission has the right to acquire control of the operations of the concessionaires.