Please people of Selangor, pay your water bills today. Puncak Niaga is short of cash. It is a money collecting agency. The directors want more..more..more.. give it to them.
Let’s take a quick look at Puncak Niaga, one of the main water concessionaires in Selangor.
You can see that the firm is making huge profits. (Profits for 2006 were higher as there was a gain arising from the partial disposal of a subsidiary of RM206m in 2006.)
The group had close to a billion ringgit in deposits, cash, and bank balances as at 31 December 2007 and a net current asset ratio of 1.2. In other words, very liquid.
Syabas, which is 70 per cent owned by Puncak Niaga, also received a government grant of RM250 million (that’s our money) “solely for the purpose of financing the costs and expenditure of the non-revenue water” to reduce unaccountable water loss.
Also, a federal government support loan (to finance construction of the Wangsa Maju water treatment plant), originally repayable over 20 years (from 1999) at 8 per cent interest rate was “restructured” in 2004. The government reduced the interest rate to 3 per cent per annum retrospectively and revised the repayment schedule of the loan. How thoughtful.
Having made super profits with the help of government funding, Puncak Niaga and other water concessionaires are now asking for a higher price than what the Selangor government is prepared to pay to nationalise water assets in the state.
These are the directors of the firm (during the financial year 2007):
The Directors of the Company in office during the financial year were as follows:
- Tan Sri Rozali bin Ismail
- Dato’ Matlasa bin Hitam
- Dato’ Ruslan bin Hassan
- Dato’ Ir Lee Miang Koi
- Dato’ Syed Danial bin Syed Ariffin
- Tan Sri Dato’ Hari Narayanan a/l Govindasamy
- Tan Sri Dato’ Seri Dr Ting Chew Peh
- Datuk Dr Rahman bin Ismail
- Tan Seng Lee
- Tengku Dato’ Rahimah binti Almarhum Sultan Mahmud *
* This Director had been redesignated to Non-Independent Non-Executive Director with effect from 1 January 2007.
The firm paid out close to RM11 million in directors’ remuneration in 2007.
According to the Annual Report:
The number of Directors of the Company whose total remuneration during the financial year fell within the following bands is shown below:
- RM1 to RM100,000 – 1
- RM100,001 to RM200,000 – 2
- RM200,001 to RM300,000 – 1
- RM500,001 to RM600,000 – 0
- RM600,001 to RM700,000 – 1
- RM800,001 to RM900,000 – 0
- RM900,001 to RM1,000,000 – 2
- RM1,000,001 to RM1,100,000 – 0
- RM1,100,001 to RM1,200,000 – 0
- RM1,200,001 to RM1,300,000 – 1
- RM1,300,001 to RM1,400,000 – 1
- RM4,500,001 to RM4,600,000 – 0
- RM5,100,001 to RM5,200,000 – 1
Total directors’ remuneration rose from RM9.2 million in 2006 to RM10.8 million for 2007. In 2006, only one director received more than RM1.2 million and no one received more than RM4.6 million. But in 2007, three directors received more than RM1.2 million, including one director who received more than RM5.1 million.
Gamuda also has an interest in water in Selangor.
And there could be a 30 per cent water tariff hike in Selangor from April!