KUALA LUMPUR – Nov 6, 2016: Former Selangor mentri besar (MB) Tan Sri Khalid Ibrahim has refuted claims by his successor Datuk Seri Mohamed Azmin Ali over an alleged billion-ringgit deal with water concessionaire Syarikat Pengeluar Air Selangor (Splash).
Khalid in a press statement stressed that the state government had never between 2008 and 2014, offered RM2.975billion for an equity takeover to the water concessionaire, as alleged by Azmin on Friday.
According to a report by online daily Selangorkini, the MB was quoted as saying that during Khalid’s administration, the State Executive Council was never informed of the business dealings between the state government and Splash.
“This is something that is against state administration practices. The administration had previously said the takeover offer on Splash was RM250 million and this figure was touted throughout the world, but the same person has never informed the assembly regarding the RM2.975 billion offer made to Splash in a letter dated June 25, 2009 and onwards July 19, 2009,” he said at the Selangor State Assembly.
Responding to Azmin’s remarks, Khalid said the allegation is untrue, misleading, and is an attempt to divert discussion on the current state administration’s decision to pay a total of RM2.7billion equity compensation to Splash.
The amount, said Khalid, is over 10 times higher than the proposed RM250.6million in the original offer.
“The fact that the state is seriously considering paying Splash an extra RM2.45 billion is an act of betrayal to the rakyat’s trust.
“I would like to clarify that while I was the MB, the state through its subsidiary Kumpulan Darul Ehsan Berhad (KDEB) had made a number of proposals to all four concessionaires, with total offer amount as following;
1) RM5.709 billion on Feb 13, 2009 in an assets-and-equity takeover.
2) RM9.218 billion on June 25, 2009 in an assets-and-equity takeover.
3) RM9.227 billion on Jan 6, 2011 in an assets-and-liabilities takeover.
4) RM9.6516 billion on Feb 20, 2013, Nov 21, 2013, Feb 26, 2014, Aug 1, 2014, Sept 12, 2014,” he stated.
In the statement, Khalid also clarified that the stated amount involves two parts, of which RM1.978billion is allocated for equity compensation based on non-compounded Return on Equity (ROE), of 12 percent per annum with deductions of any historical dividend pay-out.
He said another RM7.6749billion is allotted billion for liabilities to be assumed.
“We have never considered and decided to pay Splash RM2.975 billion for equity takeover alone as alleged by the current MB. While we used various valuation methods (for each concessionaire) the value of equity was pretty much equal. In our final offer, we decided to offer only RM250.6million for equity compensation,” he added.
Khalid had also disproved the claim that he had never informed the state assembly of the ‘non-existent’ RM2.975billion deal with Splash.
“There was no reason for me to hide offers made by the state. All decisions are presented before the exco-members and the state assembly whenever necessary.
“Additionally, as the water restructuring agreement involved several public-listed companies, every detail of the offer should be made known to Bursa Malaysia and relevant authorities,” he said, adding that his office had always held press conferences on water deals and hosted briefings and roadshows on water issues.