Pua slams government ‘bailout’ of Syabas

KUALA LUMPUR, Dec 10 — DAP chief economist Tony Pua slammed what he described today as an unjustifiable “bailout” of another private company with close ties to the government, this time involving the Selangor water supply company Syabas.

A press statement issued by the Malaysian Rating Company (MARC) yesterday revealed that Syabas, while in financial distress, has been given the AA rating after news that it will receive RM330 million from the federal government.

The statement added that the loan will be unsecured and interest-free and is expected to be given to Syabas by year-end.

The money will be used to repay Syabas' outstanding debts and rectify its cashflow problems.

Speaking to a press conference at Parliament lobby, Pua (picture) expressed shock at the revelation made by MARC and said that the bailout could not have come at a worst time.

"This is a shocking development and we must ask the federal government why it is using taxpayers’ monies to provide life-support to a private company?

"Even when the government forked out RM4.6 billion in soft loans to Port Klang Free Zone, which is a 100 per cent government entity, a 4 per cent interest rate was charged," said Pua, the Petaling Jaya Utara MP.

PAS central committee member and Kuala Selangor MP Dr Dzulkefly Ahmad, who was also at the press conference, said the interest-free loan is akin to giving a Christmas present to Syabas.

"Syabas has been given a present in the form of lucrative loan terms by the federal government which is now a Father Christmas," he added.

Syabas is currently at loggerheads with the Pakatan Rakyat-led Selangor government over water supply rights in the state.

The Selangor government is attempting to take over the rights in its bid to restructure the water industry as part of its promise to provide cheaper water to its electorate within the state.

But the Barisan Nasional-led federal government seems keen on awarding the contract to Syabas despite the company's ailing finances, and Pua and other opposition lawmakers want to know why.

"We will make a last-ditch appeal to the Prime Minister and Finance Minister Datuk Seri Najib Razak to intervene to revive the water restructuring exercise under the state government to ensure that the rakyat's interest is fully protected," said Pua. (TMI)