IN a groundbreaking move, the Penang state government has become the first Opposition-led government to surrender its water assets to the federal government, after signing a historic water restructuring agreement.

The state's water assets will now be controlled by the federal-owned Pengurusan Aset Air Berhad (PAAB). The signing ceremony was witnessed by Prime Minister Datuk Seri Najib Tun Razak and Penang Chief Minister Lim Guan Eng.

The prime minister hailed the agreement as an example of what federal and state governments can do together. “This is a lucid example of a successful cooperation and understanding reached between the Federal Government and the state government of Penang in realising the restructuring of the water services industry,” he said. Read here.

As part of the agreement, Penang is now relieved of repaying its water supply loans, which amounted to RM655.24mil. “This will enable PBAPP to focus solely on providing water treatment and distribution services and concentrate on achieving operational efficiency, good quality water and services,” said Lim. Read here.

The federal government will also build a new dam in Penang, as well as enlarge the existing Mengkuang Dam, as part of efforts to increase the state's water supply by 3.8 times the existing amount. Read here.

In spite of the transfer of water assets, it is believed that the Penang state government will still retain control over any water tariff revisions in the future. "On the flip side, the federal government would be responsible for the source work of water supply projects including the funding, upgrading and development of water infrastructure in Penang," said AmResearch Sdn Bhd. Read here.

Najib expressed his hope that other states will follow suit. "Penang's migration to the country's new water industry regime will generate rapid development for the state, particularly in the water industry," he said. Read here.

Others, however, caution that the agreement is another sign of growing federal control over states, reflecting the increasing centralisation of federal powers in Malaysia. Read here.

Women "branded", nation in uproar

Malaysia, and the world, were stunned when reports emerged that 30 prostitutes in Penang had been chained and branded by the police.

A nightclub was raided, resulting in the arrests of several dozen women from China and Vietnam. Photos of the women chained together, with either a tick or an "X" scribbled on their chests or foreheads were carried by local dailies, triggering a public outcry. ''It is sickening that the police would employ such dehumanising tactics as a show of power and moral superiority over their detainees," said opposition lawmaker Teresa Kok. Read here.

An internal investigation has been ordered by the inspector-general. "We understand the severity of this matter and why the people are unhappy about it," said state police chief Datuk Ayub Yaakob. Read here.

Other news

• Penang CPO: Lack of affordable housing contributes to crime: The lack of affordable and low cost housing in Penang contributes to crime in the state, said Penang police chief Datuk Wira Ayub Yaakob. Read here.
• Botanic Gardens on alert: The leptospirosis bacteria has been detected in a stream outside the Botanic Gardens. Read here.
• Court reprieve for killer dogs in Penang: A High Court here has granted a stay of execution of the magistrate court's order for the four pitbull-type dogs belonging to organic farm owner Joseph Teoh, 42, and his wife Teoh Bee Eng, 56, to be put to sleep. Read here.
• Turn back the clocks: Business is booming in George Town, a wonderful glimpse of old Asia protected by a UNESCO World Heritage listing. Read here.
• Penang Hill attracts over 75,000 visitors within five weeks: The new Penang Hill train service has attracted more than 75,000 visitors since it started operating five weeks ago using Swiss-made coaches. Read here.

For more news on Penang, please click through to iGT NetBuzz May 30 to June 5, 2011 here. For daily updates, "like" iGeorgeTown on Facebook or join us on Twitter.

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