MCA Penang has called on the DAP-led Penang state government to reconsider the recent water tariff hikes in light of Penang Water Supply Corporation’s (PBAPP) substantial profit increase in 2023.
Its state liaison committee chairman Datuk Tan Teik Cheng, citing Penang Chief Minister Chow Kon Yeow, said PBAPP’s holding company, PBA Holdings Bhd (PBAHB), recorded a pre-tax profit of RM68.4 mil in 2023, or a 107.3% increase in profit before tax compared to RM32.998 mil in 2022.
“Noting the lower net profit compared to the previous year as to special tax allowance was given this year, PBAPP’s performance warrants scrutiny, especially with 6,330 unscheduled water supply interruptions reported in Penang last year which is more than double the national average,” said Tan who is also the MCA vice president.
“Additionally, 39,052 complaints were lodged for pipe issues. Despite this figure being slightly below the national average of 43,797, it is still steep considering that it is only for one state as opposed to 13 others.”
Tan said the Penang state government and PBAPP should justify why households and businesses must bear higher charges amid these operational challenges, adding that the state exco must prioritise Penangites’ welfare over corporate interests.
“Grievances have arisen regarding the generous allowances and bonuses for a PBAPP non-Executive Director who was paid RM47,600 a month in ‘special functions’ allowances, RM1,000 in executive fees and RM300 in meeting allowances, highlighting concerns over financial stewardship,” he noted.
“Thus, the entire Penang state Exco needs to self-reflect on its priorities. Do they stand with the hardships of common Penangites, or continue to sit in cushy air-conditioned rooms with the PBAPP board of directors?”
“Should PBAPP’s profits be shared with Penang water consumers, or to continue to feed the fat paychecks of its non-Executive director along with whatever other bonuses there may be for its Board of Directors?”
Tan went on to question the justification of smaller households be made to pay the extra charges.
“Factories, hawkers, laundromats, car wash operators, restaurants, hair salons, agriculture farms and swimming pool teaching centres may consume the most volume of water.
“It is only natural and expected that the added charges will be passed down to consumers. However, is it justified that smaller households with one of two occupants, or even B40 and M40 households with even up to two families cramming under one roof to safe on costs, be made to pay the extra water charges?” he asked.
“MCA Penang urges CM Chow to revoke the recent tariff hikes, ensuring Penangites benefit from PBAPP’s improved profits in 2023.” – June 28, 2024
Main pic credit: Bernama
