LOCAL AUTHORITIES TOLD TO SETTLE OUTSTANDING DEBTS FOR WASTE MANAGEMENT

KUALA LUMPUR, Dec 8 (Bernama) -- Local authorities having outstanding debts
with solid waste management companies must settle them before the Solid Waste
Management and Public Cleanliness Act 2007 comes into force next year, said
Deputy Prime Minister Muhyiddin Yassin.

He said the debts accumulated since 13 years ago now stood at RM348.6
million.

"Local authorities having outstanding arrears with companies given
concessions for solid waste disposal have to clear them before waste management
services are taken over by the Housing and Local Government Ministry," he told
reporters after chairing a meeting of the Cabinet Committee on Solid Waste
Management here Wednesday.

Muhyiddin said this was among the matters agreed on at the meeting which
was held to discuss the direction of solid waste management in the country.

"This is an important issue but has not been addressed for some time
...overall there is acceptance that the federal government takes over solid
waste management in the country but a few states have asked for more detailed
discussions before they get on board (letting the federal government take
over)," he said.


Muhyiddin said besides this, the meeting also agreed that state governments
and local authorities would pay existing rates when the federal government took
over the matter.

"Any rate increase when the service is fully privatised will be borne by the
federal Government," he said, adding that an agreement on the payment schedules
would be signed by the state governments, local authorities and the federal
government.

Apart from these, Muhyiddin said the meeting also agreed that novation
agreements (substitution of a new contract for an old one; or the substitution
of one party in a contract with another party) would be drawn up in determining
the new concessionaires for waste disposal services before the Act was enforced.

He said the attendees also agreed that existing landfills could be used by
the federal government.

Meanwhile, the Housing and Local Government Ministry in a press release said
all decisions made at the meeting were agreed to by all states except for
Penang, Perak and Selangor which sought a postponement on a final decision
pending a detailed study of the meeting's recommendations.

The meeting Wednesday had deliberated on four working papers tabled by the
National Waste Management Department and Solid Waste and Public Cleanliness
Corporation.

-- BERNAMA