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Klang MP disputes legitimacy of Putrajaya-Selangor water deal as MB crisis drags on

A DAP lawmaker has warned the Selangor government against signing any water restructuring deal with Putrajaya, saying its legitimacy is doubtful amid the political crisis in the state.

Klang MP Charles Santiago said the legitimacy of the water agreement would be questionable if it was signed in the midst of a leadership change in Selangor.

He said embattled Tan Sri Abdul Khalid Ibrahim, who is expected to be replaced soon, was a "caretaker" menteri besar, after his resignation was deferred by the Selangor Sultan in order to find a replacement.

"My question is whether a caretaker MB, working with a skeletal state cabinet, can sign a deal worth RM9.65 billion, especially given the huge financial and other implications for the state?" Charles (pic, right) asked in a statement today.

"Signing the agreement in the midst of a change in administration could lead to questions of moral and legal legitimacy, especially since there has hardly been any openness and transparency in the negotiations so far."

Khalid has reportedly said that his state government was in discussion with Putrajaya to finalise the water restructuring agreement, which is expected to conclude by the end of this week.

On August 1, Putrajaya and the Selangor state government signed the Heads Of Agreement on restructuring the water supply industry, paving the way for a long-term solution to the water issue in the state.

The agreement will see Selangor taking over four concession companies, Abass, Syabas, Puncak Niaga Sdn Bhd and SPLASH.

Khalid was later sacked from PKR for refusing to make way for its president Datuk Seri Dr Wan Azizah Wan Ismail to take over as MB.

He was also severely criticised for his decision to secretly sign a "lopsided" water-restructuring deal with Putrajaya, without consulting Pakatan leaders. The deal saw hefty payouts to the water concessionaires in Selangor, owned by Umno-linked tycoons.

Santiago called on Putrajaya to postpone the signing of the final agreement on the water restructuring exercise in Selangor and instead wait for the new leadership to be sworn in for the sake of "good governance and accountability".

"The incoming leadership should be allowed to take ownership of the final agreement since they will be held responsible in implementing the various undertakings and financial commitments, including the proposed tariff increase in the coming years."

"Selangor's new leadership should not be put in a difficult position especially if there are court challenges on the legitimacy of the water restructuring exercise," he said.

So far, Abass, Syabas and Puncak Niaga have consented to the acquisition by the state but negotiations with SPLASH was still ongoing. – September 9, 2014.