Took this from Dr Rafick's blog.
He took the trouble to attend the Selangor State government briefing on the matter of the water issue. It's is an excellent write up - simple and succint. Click on the title to read the entire article.
4. A fourth company called Syabas was given the rights to buy this water from this three companies and sell them to companies and residents in Selangor and WPKL/Putrajaya. This business was offered on a direct negotiation basis with friendly parties in 1996. Syabas was given a RM250mill grant (no need to pay back) and a very cheap loan over RM 2 billion to kick starts their business operations.
5. Under the agreement, none of the companies owns any asset but rather rent it from the State Government (SG) at RM1.00. Over the years, the company made monies and the water rates went up substantially. In fact, if Syabas continues to run the show, the water rates would go up by 37% (2009), 25% (2012) and 20% (2015) respectively.
9. Currently, the Selangor Government now wants to buy back the assets that they had only rent out for RM 1 to Syabas in 1996. Now they want to spend RM 5.7 billion to pay the concessionaires to buy something that they owned but rent out to the various companies for RM 5.7 billion. Some argue that Syabas has actually laid new pipes and that now belongs to Syabas. Unfortunately, the cost of laying of the pipes was made via a RM250 mill grant and RM 2 bill federal loan with cheap interest.
10. I do not get it. Why are buying something that we own? It is like you own a house, you rent it out, and now you want it back you have to pay the tenant a bomb. In the first place, I do not understand why such a lucrative business is being given out on a direct negotiation basis with companies that do no have any track records. Wouldn’t it be better to discuss it with Penang Water Board or Perak Water Board, which are able to provide low water cost to the respective state and yet make a decent profit?---------------------------
That means these fellas get the whole region's water infrastructure FREE from the govt!!
PLUS govt GIFTS them RM250 mil so they can "profit" from day 1!!!
PLUS govt gives them extra RM 2 billion to run their business?!!!
In ringgit and sen, what this means is that each and every one of the water users in WP/Selangor PAID the water concessionaires hundreds of ringgit each in return for the privilege to pay an arm and a leg to drink dirty water.
And if the 5 million people these fellas have by the balls don't like how their tax money is used to finance a few people's lavish lifestyles - too bad!!!!
This is really the PUNCAK (pinnacle) of business deals - KABBAS the rakyat's money and SPLASH out on their luxurious tastes, rakyat foots the bill! SYABAS for getting such a business!
Forget those seminars about how to make money with no money down. THESE are the guys to learn from! Billions in profit from day 1 - no need experience/expertise, no need startup capital, no need rolling capital, no restructuring, absolute monopoly, govt-guaranteed profits,and no need to adhere to KPIs.