In a press statement today, Khalid said a hike should not be considered until three to four years after the restructuring is completed, and it must not exceed 12 to 15 per cent of the current rate.
“I am shocked and disappointed by such a drastic change to public policies, when the restructuring was initiated with the aim of providing water to the people in an efficient manner and at an affordable price,” he said.
Khalid, who is the assemblyman for Port Klang, called for an independent supervisory board to be established with the purpose of overseeing the hike.
“To ensure that the rights and welfare of the people are protected, I propose that an independent water industry supervisory board be established,” he said. “Among their aims is to supervise the tariff establishment methodology and quality of service and to ensure the validity and legitimacy of the need for the hike as claimed.
“Even if the justification exists, it must be tabled at the state assembly first.”
He said the hike would not be necessary if the state government, which no longer has to follow concession agreements, were to prevent waste and leakage in the operating costs by getting rid of unnecessary spending, reducing multi-tiered contracts, and stopping the practice of awarding sub-contracts.
Khalid asked for details of the company appointed to independently evaluate the amount of compensation to be paid to SPLASH, and the amount of consultancy fees paid by the state government.
He advised the state government to understand every single detail of the water suppliers’ accounts and financial records, especially those concerning expenditure. “Only then can the state come up with a sustainable formula to avoid tariff hikes for an extended duration,” he said.
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