Sanusi defends tariff hike to keep Sada profitable
He defended the six-sen increase as necessary to ensure Syarikat Air Darul Aman (Sada) stays profitable and can repay its debts.
He added that Kedah was not the only state to seek higher rates, as 10 other state operators have also submitted applications.
"Sada must record profits to pay off its debts. I want to ensure our business plan sustains loan repayments so the state continues to secure its rights," he said at the State Legislative Assembly today in response to a supplementary question from Bau Wong Bau Ek (Sidam–Pakatan Harapan).
Sanusi said Sada's after-tax profits stood at RM12.1 million in 2010, rising until 2012 before dropping to RM22.9 million in 2013, RM21.2 million in 2014, RM13.1 million in 2015, RM6.1 million in 2016, and RM450,000 in 2017.
By 2018, profits fell to RM31,000 before the utility recorded a RM36 million loss in 2019.
He said operations were reformed after Perikatan Nasional took over the state government in 2020, with Sada turning around a RM149,000 profit that year.
"Since then, Sada has remained profitable, with RM29.5 million in 2021, RM41.5 million in 2024, and this year's projection at RM80 million," he said.
Sanusi also said executive powers over treated water rest with the Federal Government under the National Water Services Commission (SPAN), as provided for under Section 3 of the Water Services Industry Act 2006.
"If SPAN finds that revenues cannot sustain debt repayments, it has the authority to take over. So when all state water operators applied for tariff adjustments, all of them have been approved.
"This is happening nationwide, not only in Kedah," he said.
He said water infrastructure in Kedah was being upgraded in stages, but delays or debt defaults could expose the state to risks.
"If treated water supply is taken over by amending the Ninth Schedule of the Federal Constitution, the state would only retain raw water sources, canals and drains, while clean water supply would come under the Federal Government.
"The state's sovereignty depends on its rights over water, land, forests and religion under the Sultan's patronage. If even water is taken away, we lose a vital part of that sovereignty. That is why we strive to repay water debts and maintain Sada as the operator," he said.
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