Monday, September 04, 2006

Gov't Proposes Merger Of Water And Sewerage Services. Guess Who Is Going To Suffer?

The government may merge the water and sewerage services industry when the National Water Services Commission (Span) and the National Water Services Industry Act are fully implemented, the Dewan Rakyat was told Monday.

Deputy Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said that with the merger, the government might implement a single-bill system for the two services.

Shaziman also said that the government had no intention of re-privatising Indah Water Konsortium (IWK) which it took over in 2000 after the sewerage service company's operating cost exceeded its fee collection. The government was more interested in improving IWK's service and raising public awareness of the service, he said in reply to Hasni Mohamed (BN-Pontian).

Shaziman said IWK was still not collecting enough to cover its operation cost. The government had to fork out money to rehabilitate several small treatment plants which had not been maintained all this while, he added. "Last year alone, the government gave an additional allocation of RM120 million and the amount will touch RM40 million this year."

Shaziman said that before the government took over the company, IWK had cash flow problem because the sewerage charges it collected were not enough to cover its operating cost and capital. The cash flow problem arose from two sources -- the failure of many customers to pay for its service and the 30 per cent reduction in sewerage charges for commercial clients from 1997 to 1999, he added.

He said that after the takeover, bill collection rose to 85 per cent, from 50 per cent previously.

**** Looks like we shall be obliged to dig deeper into our almost empty pockets when the single-billing system is implemented. I still feel that it is not the public's responsibility to pay for sewerage services. It is part and parcel of the local authority's obligations. But since a court judgement went in favour of IWK recently, there is nothing much we can do but groan and pay up. Unless the case which is being appealed returns a favourable finding for the public. We'll just have to wait and see. Details on that court case here: Oh, Oh! Looks Like IWK Is About To Raise A Stink.

2 Comments:

Anonymous Anonymous said...

Habis lah sekarang. Menyesal je undi kerajaan ni. Pegawai k'jaan ada bonus. Bayangkan lah keadaan orang cam saya ni yg kerja di pejabat swasta, ngan overtime pun duit tak cukupi.

6:02 PM GMT+8  
Blogger The Malaysian. said...

anonymous, if every person who feels that it is going to be a burden were to write in to the press or their MPs and state Assemblymen, I'm sure the government may take another look at the proposal. Otherwise its bye bye to more of our hard earned money.

9:42 PM GMT+8  

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