UMNO-LINKED PUNCAK NIAGA SUES AZMIN, KHALID & SELANGOR FOR RM14BIL: NAJIB’S NEW STRATEGY TO WREST BACK S’GOR – BY WIPING OUT ITS RESERVES?

Puncak Niaga Holdings Bhd has filed an RM14 billion lawsuit against Selangor Menteri Besar Azmin Ali, his predecessor Abdul Khalid Ibrahim, and the state government over the takeover of the state’s water industry.

The water company alleged that both Azmin and Khalid had abused their powers by threatening to cause, or attempting to cause, the federal government to invoke the use of the Water Services Industry Act 2006 to force a takeover of the state’s water industry, The Edge reported.

In a filing with Bursa Malaysia yesterday, Puncak Niaga claimed that the Selangor government is “vicariously liable for the acts of Khalid and Azmin.”

Case management has been fixed on Nov 28 at the Shah Alam High Court.

Puncak Niaga is claiming damages, interest on damages and costs of the difference between the value of PNSB Water Sdn Bhd (formerly known as Puncak Niaga (M) Sdn Bhd) at RM2.08 billion and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) at RM2.35 billion, and the actual purchase consideration of RM1.55 billion under the 2014 share purchase agreement between Puncak Niaga and Pengurusan Air Selangor Sdn Bhd.

It is also claiming for the loss of business opportunities both locally and abroad, totalling RM13.5 billion.

The Selangor government and Putrajaya signed a memorandum of understanding in 2014 which saw the former taking over four water concessionaires which had been operating in the state.

Under Selangor’s water restructuring exercise, the state government had taken over water assets which had belonged to Puncak Niaga, Syabas and Konsortium Abass, worth over RM6 billion.

The disposal of PNSB and Syabas was completed on Oct 15, 2015 for RM1.55 billion.

The consolidation of water assets is still ongoing, as the takeover of Splash, or Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, has not been completed.

– M’kini

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