Congrats, SYABAS On Your RM151 Million Bailout
The threat of the high national debt and inflation is ringing loudly in the Rakyats' ear, but the Federal Government can still afford a RM151 million bailout for SYABAS. How is this possible? Tony Pua tells why.
By Judith Yeoh — 23 Oct 2013, 06:10 PM — Updated almost 11 years ago
In Times Of Rising Debt, The Federal Government Grants Subsidiary Company SYABAS RM151 Million Worth of Soft Loans
The BN-led federal government continues to bail out water concessionaire Syarikat Bekalan Air Selangor (Syabas) despite ongoing negotiations for takeover by the Selangor government and the battle against persistent budget deficit and rising debt.
malaysiakini.com
Yesterday, Puncak Niaga Holdings Bhd announced that the Federal Government has extended a further RM151 million of soft loans to its subsidiary Syarikat Bekalan Air Selangor (SYABAS) purportedly to replace old and critical pipes in Selangor, Kuala Lumpur and Putrajaya and to reduce non-revenue water losses in the state, which is among the highest in the country.
In Times Of Rising Debt, The Federal Government Grants Subsidiary Company SYABAS RM151 Million Worth of Soft Loans
Image via mkini.netPuncak Niaga Says Two Soft Loans Will Be Given To SYABAS To Finance Its Works For The Water Supply Mitigation Programme
In a filing to Bursa Malaysia today, Puncak Niaga said that the first phase of a RM75 million loan would be used to finance works related to the water supply mitigation programme, involving old pipes and critical pipes replacement in Selangor, Kuala Lumpur and Putrajaya.
themalaysianinsider.com
Another RM76 million from the loan will finance the second phase of the programme which involves reducing non-revenue water loss.
themalaysianinsider.com
Syabas is a 70 per cent-owned subsidiary of Puncak Niaga Holdings Bhd.
antarapos.comSYABAS Has A Three-Year Grace Period To Start Repaying At A Subsidised Interest Rate Of 3%
Syabas is given a three-year grace period to commence repayment of the loans and will be charged a subsidised interest rate of only 3 percent. Interest for the loan was at three per cent per year while default interest was at five per cent per annum.
malaysiakini.com
SYABAS Has A Three-Year Grace Period To Start Repaying At A Subsidised Interest Rate Of 3%
Image via theoptionspecialist.comThis Is Not SYABAS' First Bailout. Since 2009, SYABAS Has Received RM3.6 Billion Of Tax-Payers Money To Save Itself From Collapsing
"The above amount comes just 8 months after a RM120 million soft loan was extended to the company in February to carry out the same works," he disclosed.
themalaysianinsider.com
Even before this, the Federal Government has also given generous helping hands to Syabas with a RM320.8 million zero-interest soft loan and RM110 million credit facility in December 2009 and October 2011 respectively.
To top it all off, the Federal Government took over all of the outstanding debt of Syabas amounting to RM2.9 billion which was due and the company was unable to repay in 2011, effectively bailing out the cash constricted concessionaire.
"This means that Syabas has benefited from a total of RM3.6 billion of tax-payer's money in the form of grants and loans to save the company from collapse since December 2009.
themalaysianinsider.com
Tony Pua Questions The Federal Govt's Decision To Continue Loaning Millions To SYABAS Despite SYABAS' Failure To Deliver Quality Water Services
Tony Pua Questions The Federal Govt's Decision To Continue Loaning Millions To SYABAS Despite SYABAS' Failure To Deliver Quality Water Services
Image via freemalaysiatoday.comThe Petaling Jaya Utara MP criticised the federal government’s latest round of loans to Syabas, saying that it would further delay a deal from being reached.
themalaymailonline.com
"The question that needs to be asked is why is the government so persistent in extending these annual credit facilities, worth millions, to Syabas despite the latter's obvious failure to provide quality water services to the public as demanded in the water concession agreement signed in 2004?" asked Pua.
themalaysianinsider.com
“Any sensible government would have taken the opportunity to pressure Syabas to ‘settle’ the impasse before granting any financial favours,” Pua said in a statement today.
yahoo.comHe Highlights That The Loans Were Granted Out Of BN's "Kindness" As There Is No Obligation The Govt To Provide Financial Aid
It should be emphasised that, under the Agreement, there is absolutely no obligation by the federal and state government to provide financial grants or loans for Syabas to upgrade water infrastructure to fulfil its obligations to provide quality water services.
malaysiakini.com
"This means that the RM3.6 billion extended to Syabas is done entirely out of the kindness of the BN Government to save a private concessionaire," he said.
themalaysianinsider.com
He Highlights That The Loans Were Granted Out Of BN's "Kindness" As There Is No Obligation The Govt To Provide Financial Aid
Image via nst.com.myThis Loan Can Give A Financially Desperate SYABAS Delay Any Deals From The Selangor State Govt Takeover
He Highlights That The Loans Were Granted Out Of BN's "Kindness" As There Is No Obligation The Govt To Provide Financial Aid
Image via thestar.com.myPua claimed that the latest loans from Putrajaya showed Syabas's "financial desperation" as it was discussing with the Selangor state government and Putrajaya for a possible takeover.
themalaysianinsider.com
"For this loan to be extended while extensive negotiations are taking place, it will surely strengthen the bargaining power of Syabas to press for a higher takeover price from the state and delay any deal from happening soon," he charged.
themalaysianinsider.com
Tony Pua Suggests Cronyism As SYABAS Was Still Able To Pay Its Chairman RM33 Million Despite A Financial Crisis
Pua also pointed out that despite Putrajaya being strapped for cash, noting the country’s budget deficit and high debt level, the federal government continues to “use taxpayers’ monies wantonly to rescue BN’s crony companies”.
themalaymailonline.com
“By right, if Syabas fails to perform its obligations to upgrade and maintain its water pipes to provide quality water services as agreed under the concession agreement, the federal government should sue the company for compensation or terminate the agreement for default,” he said.
themalaymailonline.com
“However in Malaysia, despite telling ordinary Malaysians that subsidies need to be cut and more taxes need to be collected, crony companies continue to enjoy the implicit government guarantee from financial distress,” added Pua.
yahoo.comIt is rubbing salt into the rakyat's wounds when Puncak Niaga - which can afford to pay its chairperson Rozali Ismail a whopping RM33 million in fees and bonus for 2013 - begs the federal government for RM151 million for Syabas to carry out its obligations.
malaysiakini.com
Tony Pua Suggests Cronyism As SYABAS Was Still Able To Pay Its Chairman RM33 Million Despite A Financial Crisis
Image via freemalaysiatoday.com