ISKANDAR PUTERI: The Johor state government will soon sit in a meeting with SAJ Ranhill Sdn Bhd to embark on a move to gain full control over the water company operation in the state by acquiring the majority shares in the company equity.
State public works, rural and regional development committee chairman Datuk Hasni Mohamed said the move to increase the state government shares in the water utility company was to reposition itself in the state water management operations in terms of having power to control and obtaining rights in decision making relating to the water development in the state.
Hasni said at current the state do not have a say in SAJ Ranhill operations as it only holds 20 per cent shares of the company equity which limits its power to monitoring, and restricted to regulating the water supply and distributions in the state only.
"If the move to increase the state government shares via full acquisition of its equity or at 51 per cent of the shares, it will be purely base on revisioning our business planning with SAJ Ranhill and not a hostile takeover," he told the press during a break at the 13th State Assembly meeting.
Hasni said the matter was raised during the assembly meeting in response to Bukit Permai and Rengit assemblymen questions on the state water operations since the last water restructuring exercise between SAJ Ranhill and the Johor government made almost a decade ago.
Hasni said the state government is also open to options.
He said SAJ Ranhill president and chief executive officer Tan Sri Hamdan Mohamad will probably attend the meeting.
"The meeting will include Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin and I, as the outcome of the decision will also look into the water consumption of the Johor consumers," he said.
Hasni said with the insertion of state government as main shareholders in the equity will give autonomous power for the government to regulate the state water tariff and development spending on state water assets and resources.
He also said the move was to safeguard the state government water assets and resources from external takeover should SAJ Ranhill plans to sell off its shares in future.
"However the move would require a review and subjected to an approval from the National Water Service Commission (SPAN) for the state government to have full control over SAJ Ranhill water operation in the state," he said.