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Conflict of interest in Langat 2 dam deal

 | September 14, 2012

Two companies that conducted a study in 2000, speculating water shortage, have been given engineering design contracts.

PETALING JAYA: Klang MP Charles Santiago has raised concerns over a case of conflicting interest in the Langat 2 dam construction.

“In 2000, the government commissioned a study on water shortage to three companies – SMHB Sdn Bhd, Ranhill Consulting Sdn Bhd and Zaba Sdn Bhd,” said the DAP leader.

Pengurusan Aset Air Bhd’s (PAAB) CEO and director Ahmad Faizal Rahman announced that three companies had been appointed to undertake the engineering design of the Langat 2 plant.

The three were SMHB Sdn Bhd, Ranhill Consulting Sdn Bhd and KTA Tenaga Sdn Bhd.

“This is a clear case of conflict of interest because the contracts have been given to the people who conducted the study,” said Santiago, who is also the coordinator of the Coalition Against Water Privatisation (CAWP).

He also accused the companies of creating an environment to secure more contracts and urged the government to re-evaluate the study done in 2000.

“Did they write the report to secure contracts?” he asked.

Santiago also pointed out the change in the year when the crisis would take place as stated by PAAB.

Ahmad Faizal had said that the state would need an additional 1,000 million litres per day (mld) by 2016 from the current capacity of 4,400 mld based on an annual 3% increase in water demand.

“All the while we have been hearing from Syabas that the water crisis would happen in 2014. Now PAAB is saying that the crisis would happen in 2016,” said Santiago.


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