16 October 2007

Waste fee aid only for poor councils



Only local councils with an annual revenue of less than RM5 million will receive government assistance in settling their arrears with waste management concessionaires.

Housing and Local Governments Minister Datuk Seri Ong Ka Ting said others need to come up with their own initiatives to pay what they owed Alam Flora Sdn Bhd and Southern Waste Management Sdn Bhd.

This decision was made at the recent Local Government Council meeting chaired by Deputy Prime Minister Datuk Seri Najib Razak.

Ong was commenting on the failure by local councils to settle their arrears with the two companies.

Ong was speaking after attending the open house of Negri Sembilan Menteri Besar Datuk Seri Mohamad Hasan in Rantau yesterday.
The Auditor-General's Report had highlighted the Nilai Municipal Council's failure to pay RM17 million in fees to Southern Waste. Mohamad had said most local councils would become insolvent in the next few years as many had a revenue shortfall.

Ong said local councils must settle their current outstanding payments as they are bound by contracts they signed with the two companies.

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