GEORGE TOWN: Three days after Chief Minister Lim Guan Eng pinned the blame on the state water tariff review on the federal government, Penang Water Supply Corporation (PBAPP) today acknowledged that the state-owned water operator had indeed applied for the tariff review.
PBAPP chief executive officer Jaseni Maldinsa in a press statement today said the company had submitted a final proposal on the water tariff review to National Water Services Commission (SPAN), an agency under the Energy, Green Technology and Water Ministry (KeTTHA) last July.
"PBAPP is licensed by SPAN to serve as the state's water operator and only licensed water operators submit tariff proposals.
"The water operator submitted a final proposal on the water tariff review to SPAN on July 30 last year as required by the Water Services industry Act 2006," he said.
Jaseni said PBAPP had been informed by SPAN that the federal government approved the water tariff review on Feb 13, 2015 and gazetted it two days later on Feb 15.
Jaseni said PBAPP would not implement the tariff hike without approval from the Federal Government.
He added that the primary objective of the water review was to reduce the high domestic water consumption to avoid water rationing in Penang, while pointing out that PBAPP had followed proper procedures and complied with the Federal laws in the water tariff review proposal.
On Sunday, a pro-opposition news portal had reported Lim as saying that issues concerning water was under the federal government's jurisdiction and not the state government.
He had also claimed that that the state government was merely implementing SPAN's suggestion to raise the water tariff.
Lim was responding to a question on whether his administration would response to banners and billboards erected during the Permatang Pauh by-election campaign which criticised the state government move to increase the water tariff beginning early last month.
However, KeTTHA deputy minister Datuk Seri Mahdzir Khalid when responding to Lim's statement yesterday, revealed that it was PBAPP who had applied for a tariff review last year.
Mahdzir also pointed out that Lim was also involved in the process, in the latter's capacity as PBAPP chairman and the chief minister.
This had prompted state Barisan Nasional chairman Teng Chang Yeow to demand an explanation from Lim and dared the latter to expose communications it had with the ministry on the matter.