ISKANDAR PUTERI: A Johor state assemblyman has called for the state government to take full control of SAJ Ranhill Sdn Bhd.
At the 13th Johor State Assembly Meeting yesterday, Kempas assemblyman Datuk Tengku Putra Haron Aminurrashid said the state government should push for compulsory acquisition amid fears that the integrated water supply company may fall into foreign hands.
He said that with a cash reserve of almost RM4 billion, the state government can afford to acquire SAJ Ranhill through its majority shareholder, a public-listed company Ranhill Holding Bhd for a fraction of the amount.
“However remote this may be, there is still a possibility that Ranhill is sold by its majority shareholder to investors from a neighbouring country. In such a situation, we would lose control over not only of the water industry but also a national treasure which symbolises our sovereignty.
“If this happens, we could also subject the state to the possibility of economic sabotage by the competing foreign country. This would put to a halt to the state government’s aspiration of being an economic powerhouse in Southeast Asia,” he said.
Tengku Putra said the state government can make an offer to Ranhill for this to take effect, failing which, the state government should seek for a compulsory acquisition of the company under the provisions of the Water Services Industry Act 2006.
Under Section 114 of the Act, the federal government through the Ministry of Energy, Green Technology and Water can exercise its rights and powers as well as any other relevant acts, statutes or regulations to assist the state government in the compulsory acquisition of the water company.
This includes invoking Section 114 of WSIA in order to address issues of national interest to ensure security, sustainability and viability of the water supply industry in Johor.
“It is time for the state government to restore the ownership of the Johor water company to the people of Johor and that it should be done without delay,” he added.
Tengku Putra also called for a forensic audit on the water tariff between the state government and SAJ Ranhill as provided for under the Water Supply Agreement 2009.
He said that under the agreement, the state government is selling water to SAJ Ranhill at a much lower rate than that to Petronas for the Pengerang project.
“If the same rate is imposed, the state government could have collected an additional revenue of millions of ringgit which can be distributed for the development of the state and the people,” he said.
Tengku Putra also raised the issue of SAJ Ranhill possibly offering to supply water to the developers of Forest City, saying that this goes against the state government’s decision for the project to find its own water resources.
“I understand that the state government had informed the developers that they have to seek their own water resources either through desalination process or through other mechanisms deemed fit by the developers. This will enable the state government to prioritise the use of water resources for the domestic needs. The rakyat must come first.”