KUALA LUMPUR – MCA has urged the Penang government to reconsider its water tariff hikes in light of the higher profit before tax recorded by PBA Holdings Bhd (PBAHB), the holding company of Penang Water Supply Corporation (PBAPP), for 2023.
Its vice-president, Datuk Tan Teik Cheng, said that PBAPP’s performance warrants scrutiny, citing 6,330 unscheduled water supply interruptions in the state last year, which is more than double the national average of 2,663 cases in 2022.
He stressed that PBAPP and the state administration must justify imposing higher charges on households and businesses given the company’s operational challenges.
Tan, who is also the state’s executive councillor, said it should prioritise the welfare of Penangites over corporate interests.
“Concerns have been raised about the substantial allowances and bonuses received by a PBAPP non-executive director, who reportedly received RM47,600 monthly in special functions’ allowances, RM1,000 in executive fees, and RM300 in meeting allowances, raising questions about financial stewardship.
“The entire Penang exco needs to reflect on its priorities. Do they stand by the hardships faced by common Penangites, or will they continue to sit in cushy air-conditioned rooms with PBAPP’s board of directors?” he questioned.
Tan’s comments are believed to refer to PBAPP non-executive director Datuk P. Kuvenaraju, whose 2020 salary was criticised as “excessive”.
Penang Chief Minister Chow Kon Yeow later defended the corporate man, asserting that Kuvenaraju’s appointment and remuneration in the previous year had been approved by PBAPP’s board and its controlling shareholder, PBAHB.
Yesterday, it was reported that PBAHB recorded a profit before tax of RM68.4 million in 2023, marking a 107.3% increase from its 2022 profit before tax of RM32.998 million.
PBAPP’s net profit for 2023, however, came up to RM34.348 million, lower than the RM77.116 million net profit recorded for 2022 when it enjoyed a tax allowance.
Chow reportedly said that with the increase in water tariff rates this year, PBABB projected a RM75 million revenue increase for 2024 after taking into account the RM11 million domestic water rebate.
The rebate will see every household in Penang bear no costs for the first 10,000 litres of water used from July to December.
The effort to lessen the impact of increased water tariffs comes after the state announced a doubling of the rates beginning February 1, with accounts using zero to 20 cubic metres a month charged 50 sen per cubic metre compared to the previous 22 sen.
Consumers who use 20 to 35 cubic metres a month are now charged RM1.10 per cubic metre, while those using more than 35 cubic metres pay RM2 per cubic metre, compared to the previous rates of 46 sen and 68 sen, respectively. – June 28, 2024