Last week, Puncak Niaga Holdings Bhd filed the suit against the Selangor government, Azmin and his predecessor, Khalid Ibrahim, over a takeover of the state’s water industry.
Saying Puncak Niaga’s claims were unfounded and malicious, Azmin said he has instructed his lawyers to take further action.
“I leave it to the lawyers. We will settle it in court. This is done in the interest of the state,” he told reporters after a function here this morning.
On November 22, Puncak Niaga filed the billion ringgit suit, claiming that the duo and the Selangor government had abused their powers by threatening to cause the federal government to invoke the use of the Water Services Industry Act 2006 (WSIA) to force the takeover.
It said the company, in a filing to Bursa Malaysia, had stated that the Selangor government was liable for the acts of Khalid, who was menteri besar from 2008 to 2014, and Azmin, who succeeded him.
Puncak Niaga is claiming damages, interest on damages and cost of the difference between the value of PNSB Water Sdn Bhd (formerly known as Puncak Niaga (M) Sdn Bhd) and Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) at the range of RM2.08 billion to RM2.35 billion and the actual purchase consideration of RM1.55 billion under the share purchase agreement dated Nov 11, 2014 between Puncak Niaga and Pengurusan Air Selangor Sdn Bhd.
The group is also claiming for loss of business opportunities, both local and foreign, totalling RM13.5 billion, the report added.
In 2014, the Selangor government and Putrajaya signed a memorandum of understanding which would see the state take over the four water concessionaires operating in the state.
Under Selangor’s water restructuring exercise, the state government had taken over water assets previously belonging to Puncak Niaga, Syabas and Konsortium Abbas, worth over RM6 billion.