Privatisation: Govt flayed for not consulting civil society

Adriana Nordin Manan
Jun 23, 05 7:38pm

The government today came under fire for not including the civil society in the consultative process on plans to privatise water supply and healthcare in the country.

Panelists and individuals at the ‘Privatising Water and Health Services in Malaysia?' forum in Kuala Lumpur demanded increased inclusiveness in every level of the process.

Without mincing his words, Parti Keadilan Rakyat (PKR) deputy secretary-general Xavier Jayakumar, who was one of the panelists, took the government to task for not keeping the deliberation process transparent.

"We have written hundreds of letters (to the ministry) and knocked on their doors for so long, asking for a sit down discussion, but they haven't even offered us a meeting. What kind of consultation process is this if civil society is not included?

"How are we supposed to trust what the government says when decisions on matters of such high public interest are done without our knowledge?" he said.

Another panelist, Charles Santiago (left) - from Monitoring Sustainability of Globalisation - dismissed the consultation sessions as mere ‘briefings'.

He also rebutted the statement by fellow panelist - Ministry of Water, Energy and Communications' deputy secretary-general II Teo Yen Hua - that civil society members were invited to the discussion table at each step of the process.

"What kind of consultation session is it when all we do is receive sheets of briefing papers that were drawn up by government officials only? It is unfair to even call these sessions as consultations.

"What is needed is transparency, accountability and good governance without the interference of politicians serving their own agenda," he said.

‘Like father and son'

Federation of Malaysian Consumer Associations (Fomca) president N Marimuthu, who was also one of the panelists, had the audience in stitches when he compared the briefings to a father and son relationship.

"The actual situation is analogous to a father and son relationship where the son would just say ‘Dad, I am playing futsal tomorrow' without asking for permission or his father's opinion. This is what it is like when we are informed of a decision only after it has been taken without being asked for our opinions," he said.

Meanwhile, Fomca's vice-president K Koris accused Minister of Energy, Water and Communications Dr Lim Keng Yaik of making false claims that NGOs had been consulted and their views considered in making the recent decision to scrap the national water privatisation plans.

"Keng Yaik has made a blatant lie. His statement is very misleading when in fact, the only initiative for discussion was made not by the government but by (Parliamentary Opposition Leader) Lim Kit Siang," he during the question an answer session.

A member of the audience who only wished to be identified as Chang reminded the crowd of the role of the government to serve the people.

"Government representatives must give out information on these matters to the public, as obedient civil servants. Indeed, if the ministry officials in the panel are here to take our orders, it is that the people's concerns be acknowledged and that they remain informed of everything the government wants to do with respect to privatisation of anything," he said.

Assuring the audience that they will be kept abreast of the national healthcare financing proposals once more concrete decisions have been made, Ministry of Health parliamentary secretary Lee Kah Choon (photo) cited the importance of the subject as a reason for the lack of information.

"We have done a number of studies that still cannot be declassified as yet as it is such an important topic that requires thorough consideration on our part. It is not simply a matter of receiving recommendations by independent consultants and then coming up with a plan. A lot of time needs to be taken before we can disclose anything, but rest assured it will reach public knowledge when the time is right," he said.

Identity of consultant

On the topic of independent external consultants to the government, Rathi Ramanathan from the Coalition Opposing Privatisation of Health Services asked Lee if there was any chance that the identity of the consultant on the healthcare financing scheme proposal be disclosed, to which he replied:

"I am telling you the truth by saying that I do not know who the consultant is. Yes, I know many people may be cynical but it is true, I don't know who it is or whether it is a local or foreign entity. I don't see any reason why it (consultant's identity) can't be shared with the public though. I will relay your request to the Minister and see what happens from there."

He also asked for a little more faith in the government's ability to handle the matter.

"We are merely tackling a long pressing issue that has been mulled in the past 20 years. Trust us to thinking on our own without following blindly whatever our consultants recommend. The bottom line is that we want to find a way to finance healthcare that doesn't entail privatisation. If we are told that this is not an option, we will put out foot down and not take up the proposal. Have some confidence in us, we know what to do," he said.

The forum was organised by the Friedrich Naumann Foundation.

Protest outside Parliament against water privatisation

Beh Lih Yi and Kuek Ser Kuang Keng
Jun 21, 05 7:09pm

A 90-minute protest against the proposed water privatisation plan was held outside Parliament House this morning,with the 200 protesters urging Prime Minister Abdullah Ahmad Badawi to stop the move.

Two hours later, Energy, Water and Communications Minister Dr Lim Keng Yaik announced at a press conference that the scheme has been scrapped and that state governments would continue to manage such services through companies that should be public listed.

Commenting on the protest, Keng Yaik told the group to stop wasting their time in staging protests since the water privatisation plan has been scrapped.

“Don’t waste your time. What you (the NGOs) suggested we have followed, so why do you continue to demonstrate against your recommendation?” he asked.

Nevertheless, he said he was willing to meet with the coalition to gather their views on the water supply management.

“Yes, we can meet, but not during a demonstration. I will prepare a good atmosphere for them to discuss reform in the water services industry,” the minister said.

Handbills distributed

Among others, the ‘Coalition against Water Privatisation’ demanded that two bills - the Water Services Industry Bill and the National Water Services Commission Bill - should not be tabled during the current Parliament sitting.

The protestors held placards and chanted slogans such as ‘don’t rob people’s rights’, ‘don’t burden the people’, ‘don’t steal our water’ and urged the minister to quit. No untoward incident was reported but a handful of policemen monitored the event.

The group also distributed leaflets and handbills to those in cars passing by, including those of ministers, deputy ministers and government officials.

Keng Yaik did not stop to take the handbill but Works Minister S Samy Vellu stopped his car to take a copy of the ‘10 reasons to stop water privatisation’ handbill.

Malaysian Trades Union Congress deputy president Mohd Shafie Mamal later handed over a memorandum against the water privatisation to Parliamentary Opposition Leader Lim Kit Siang.

The five-page memorandum was endorsed by 127 non-governmental organisations, a number that was described as “a record” by coalition co-ordinator, water expert and economist Charles Santiago.

Kit Siang said he would try his best to stop the tabling of the two bills while PAS Youth chief Salahuddin Ayub, who was also present, urged the government to reconsider the formation of a select committee to hear the people’s views.

Pastikan golongan sasaran dalam pemberian subsidi diesel - PPIM

Tuesday, June 21 @ 16:55:45 MYT


Oleh Omar Saidi
KUALA LUMPUR, 21 Jun ( Hrkh) – Presiden Persatuan Pengguna Islam Malaysia, Dato’ Dr Maamor Osman menggesa kerajaan mengkaji pelaksanaan pemberian subsidi diesel kepada golongan sasaran yang berhak menerimanya.

Beliau berkata demikian , ketika diminta mengulas kenyataan Timbalan Perdana Menteri, Dato’ Seri Najib Tun Razak , kemungkinan kerajaan akan menghapuskan subsidi diesel secara berperingkat dalam masa dua hingga tiga tahun akan datang.

Beliau juga mengesa kerajaan memastikan tidak berlaku penyelewengan diesel termasuk perbuatan yang mengambil kesempatan menjual bahan tersebut kepada yang tidak berhak menerimanya.

Dalam pada itu, beliau tidak bersetuju dengan cadangan beberapa pengguna kenderaan persendirian diesel, yang mengesa kerajaan mengkaji semula bayaran cukai jalan.

“Yang penting kerajaan perlu memastikan golongan miskin seperti nelayan menerima subsidi, mendapat kemudahan itu,” katanya.

Sementara itu , Pengarah Komunikasi Gabungan Persatuan-persatu Pengguna-pengguna Malaysia (FOMCA) , Mohd. Yusof Abdul Rahman ketika dihubungi bersetuju supaya kerajaan mengkaji cara pelaksanaan pemberian subsidi diesel supaya dapat diterima oleh golongan miskin.

“Kerajaan perlu kaji cara beri subsidi diesel, kita mahu golongan miskin turut dapat manfaat dengan subsidi ini,”katanya.

Selain itu, Mohd Yusof turut melahirkan kebimbangan dengan peningkatan kadar inflasi dan berharap ianya tidak melibatkan kenaikan harga barang dan menjejaskan kehidupan rakyat. – mks.

Kerajaan batalkan rancangan pengswastaan bekalan air

Kerajaan batalkan rancangan pengswastaan bekalan air
Beh Lih Yi
Jun 21, 05 8:12pm

Terjemahan Kerajaan pusat telah memutuskan untuk menarik balik rancangan awalnya untuk mengambil alih pengurusan air negara dan mengekalkan perkhidmatan tersebut di bawah pengurusan kerajaan negeri.

Menteri Tenaga, Air dan Komunikasi, Datuk Seri Dr Lim Keng Yaik berkata, kerajaan negeri akan menguruskan perkhidmatan air mengikut model Perbadanan Bekalan Air Pulau Pinang (PBAPP).

Bercakap kepada pemberita di lobi Parlimen, beliau berkata, kerajaan pusat pula akan menubuhkan sebuah badan untuk mengawal selia industri air negara.

Cadangan pengswastaan perkhidmatan bekalan air telah mendapat bantahan hebat berikutan kebimbangan ia akan meningkatkan kadar tarif air yang akan dibebankan ke atas para pengguna.

Dr Lim mengakui – sewaktu mesyuarat perundingan anjuran Gabungan Persatuan Pengguna Malaysia (Fomca) Julai tahun lalu – telah menyatakan bahawa perkhidmatan bekalan air akan diswastakan.

Bagaimanapun, kata beliau, kementeriannya ‘telah mengubah strategi’ tersebut selepas perbincangan dengan para pakar dalam industri tersebut, kerajaan negeri dan badan bukan kerajaan (NGO) di mana beliau mendapati dua model yang dicadangkan, tidak sesuai digunakan di negara ini.

Selepas itu, kata beliau, pihaknya mendapati konsep pengswastaan sepenuhnya, yang berjaya dilaksanakan di Uniterd Kingdom, tidak sesuai dipraktikkan di Malaysia.

Berikutan itu, katanya, Majlis Air Negara telah mencadangkan supaya kerajaan pusat mengambil alih sepenuhnya industri air negara.

Badan pengawal selia

Lim berkata, pihaknya kemudiannya mengadakan dialog dengan kerajaan-kerajaan negeri tetapi mendapati mereka mahu terus menguruskan perkhidmatan bekalan air di negeri masing-masing.

Berikutan itu, katanya, beliau mencadangkan supaya ditubuhkan sebuah badan pengawal selia bagi memastikan perkhidmatan bekalan air diuruskan dengan sempurna.

“Saya seorang menteri baru (bertanggungjawab terhadap perkhidmatan air). Hanya selepas tiga bulan di kementerian berkenaan, saya mendapat idea yang salah, dan selepas mengadakan perbincangan lanjut, mereka memberitahu saya, yang ianya bukan satu idea yang bagus,” katanya.

Kenyataan beliau itu bagaimanapun bercanggah dengan kenyataan awalnya sebelum ini bahawa kerajaan negeri, kecuali Kelantan, telah bersetuju kerajaan pusat mengambil alih bekalan air negara.

Mengulas lanjut mengenainya, Dr Lim berkata, idea mengenai pengswastaan air dan pengambilan alih perkhidmatan bekalan air oleh kerajaan pusat, telah dibatalkan secara rasmi sewaktu pindaan Perlembagaan Persekutuan awal tahun ini.

Mengenai sistem bekalan air PBAPP, Dr Lim berkata, Pulau Pinang mempraktikkan pengurusan bekalan air melalui gabungan kerajaan negeri dan pihak awam. PBAPP adalah sebuah syarikat yang tersenarai dan membenarkan para pelanggan menjadi pemegang sahamnya.

Pada masa ini, Johor dan Selangor telah mengswastakan pengurusan bekalan air. Kelantan dan Perak telah memperbadankan pengurusannya.

Cari pasaran modal

Katanya, kerajaan negeri akan menguruskan perkhidmatan air megikut model PBAPP manakala sebuah Suruhanjaya Perkhidmatan Air Negara (Span) akan ditubuhkan untuk mengawal selia perkhidmatan itu bersama kuasa mengeluarkan dan membatalkan lesen operatornya.

Manakala Syarikat Holding Aset Air (WAhco) milik penuh Kementerian Kewangan akan diwujudkan sebagai satu entiti perniagaan untuk mencari pasaran modal bagi membiayai pembangunan infrastruktur berkaitan air.

Mengenai tarif bayaran air pula, beliau berkata, badan pengawal atur pusat akan menetapkan kadar standard bagi semua negeri, yang menurutnya, “lebih rendah daripada kadar tertingi sekarang dan lebih tinggi daripada kadar terendah sekarang”.

“Jangan cakap pasal tarif air, jangan gunakan tarif (air) untuk menakut-nakutkan orang, sebab itulah saya tidak mahu bercakap mengenai tarif (air)...biarlah badan pengawal atur memutuskannya. Saya tahu ada (pemberita) yang mahu memainkan cerita mengenai tarif (air), tetapi tidak bercakap mengenai perkhidmatan bekalan air, anda hanya berminat pada tarif (air),” tegasnya.

Beliau berkata, Rang Undang-undang Industri Perkhidmatan Air dan Rang Undang-undang Suruhanjaya Perkhidmatan Air Negara seperti yang dirancang akan dibentangkan kepada kabinet pada 29 Jun sebelum ke parlimen yang bersidang sehingga 26 Julai depan.

Dr Lim berkata, beliau akan meminta kabinet membenarkan rang undang-undang itu menjadi maklumat awam supaya orang ramai boleh memperdebatkannya.

Dengar pandangan awam

"Kami mahu mendengar pendapat orang ramai tentang rang undang-undang ini. Ia bukan sesuatu yang termaktub. Jika terdapat perubahan besar, saya sedia menarik balik rang undang-undang itu untuk dipinda dan membentangkannya semula pada sesi akan datang," katanya.

Sementara itu, Dr Lim beliau membidas tindakan 127 pertubuhan bukan kerajaan, kesatuan sekerja dan persatuan pengguna yang menggelar diri mereka "Gabungan Menentang Penswastaan Air" mengadakan demonstrasi di luar Parlimen.

"Jangan buang masa, semua input yang mereka beri kami sudah ikut. Kenapa demonstrasi menentang cadangan sendiri?" katanya.

Kira-kira 300 orang yang diketuai aktivis Charles Santiago berhimpun di pintu pagar Parlimen untuk mengedar risalah sambil melaungkan slogan "anti-penswastaan" dan "air adalah hak asasi manusia".

Mereka juga merancang menyerahkan memorandum kepada Perdana Menteri Datuk Seri Abdullah Ahmad Badawi bagi membantah usaha kerajaan menswastakan pengurusan air.

Gov't scraps water privatisation plan

Beh Lih Yi
Jun 21, 05 6:03pm

In a U-turn, the government has decided that water services will not be privatised or federalised after all - exactly the decision sought by a non-governmental lobby.

Energy, Water and Communications Minister Dr Lim Keng Yaik explained today that water supply services will remain under state governments, while the federal government will set up a regulatory body to oversee the industry.

He conceded that he had said water supply services would be privatised or federalised at a consultative meeting organised by the Federation of Malaysian Consumers Association in July last year.

However, his ministry “changed strategy” after holding a series of consultations with industry experts, state governments and non-governmental organisations (NGOs) during which he found out that the two models proposed were not suitable for use here.

“After consultations, we think total privatisation, which is successful in the United Kingdom, is not applicable in Malaysia... so we have cut out the word ‘privatisation’.

“The national water council then suggested federalisation to take complete control (over the water industry). We held dialogues with state governments but they said ‘No... let us have (this as) as our responsibility and our duty’.

“So I said okay, let us set up a regulatory body to make sure they can run (the industry) properly... otherwise we will give it (the authority) to someone else,” he told reporters at a 60-minute press conference held in the Parliament lobby today.

“I am a new minister (in charge of water). Just after three months in the ministry, I got the wrong idea, and after the consultations, they told me ‘Minister, this is not a good idea’.”

His statement still contradicted earlier remarks that all state governments except Kelantan have agreed to let the federal government take over control of water supply services.

Elaborating, the minister said the idea of privatisation or federalisation had been officially scrapped during the amendment of the Federal Constitution earlier this year. This was reportedly meant to pave the way for the federalisation and eventual privatisation of water supply services.

The amendment enabled jurisdiction over water supply services to be placed in the ‘concurrent list’ in the constitution - meaning the federal and state government share responsibility for overseeing the sector.

‘Follow Penang model’

Lim said he would heed the calls made by NGOs to use the public-public partnership water management module, implemented by the Perbadanan Bekalan Air Pulau Pinang (PBAPP). However he said he would insist on calling this a “public-private partnership”.

Penang uses an arrangement that keeps water supply management under combined state and public control. PBAPP is a public-listed company which allows consumers to be the shareholders.

At present, Johor and Selangor have privatised the water management services. Kelantan and Perak have corporatised entities, while state governments control the water supply department elsewhere, according to Lim.

“We have told them to follow the Penang style... we told them to change to a corporation that will be owned by the state government and hopefully, will emulate the PBAPP to become a public-listed company with its shares owned by the consumers,” he noted.

Under the latest proposal, which the minister described as “reform of the water industry”, a National Water Services Commission will be set up to regulate water supply operators.

The commission will be empowered to issue a licence to the operators, or revoke it should the operator fail to comply with performance standards.

A Water Assets Holding Company (Wahco) owned by the finance ministry will also be established as a business entity to build up capital expenditure for the water supply operators, with full cost recovery over a period of 40 to 50 years.

“Substantial funds are required and the operators can’t borrow from the bank because the bank will charge a seven to eight percent rate of interest which will not be sustainable... so we will suggest to the federal government that this capital expenditure work must be done by Wahco.”

Wahco, with its government-owned background, will be able to “go into the chartered market for a cheap and long term price”, Lim said.

According to him, this model will ensure that water service operators will not be burdened with the cost of building infrastructure amounting to billions of ringgit, but can concentrate on providing good water supply services.

Bills to be tabled

On the water tariff, he said this would be determined by the federal regulatory body, which will fix a standardised national tariff that “definitely will be lower than the current highest tariff (among the states), but higher than the lowest tariff”.

“Don’t talk about tariffs, don’t use the tariff to scare the people, that’s why I don’t want to talk about tariffs... let the regulator decide. I know (reporters) want to make news out of the tariff, but you don’t talk about the water services, you are only interested in the tariff,” he replied.

Lim said the Water Services Industry Bill and the National Water Services Commission Bill will be discussed by the cabinet next Wednesday for approval to be tabled during the current Parliament sitting up to July 26.

He added that he would obtain additional views from the public after the bills are tabled for first reading. If major revisions are required, the bills can be withdrawn and re-tabled later.

The proposed privatisation of water services sparked protests based on arguments that the increase in costs would be passed on to consumers.

Special interest groups strongly believe that essential services should not be turned into profit-oriented ventures.