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KOTA KINABALU: Former Water Department Director Datuk Amarjit Singh said any corporatisation of the State Water Department must avoid automatically absorbing or restructuring existing water concessions, including Jetama Sdn Bhd, Timatch Sdn Bhd and Lahad Datu Supply agreements.

Responding to State Finance Minister Datuk Seri Masidi Manjun’s reform proposal, he said the concessions operate under separate legal frameworks as water producers or processors, not purveyors.

Combining their restructuring with the department’s corporatisation could complicate efforts and delay progress, he stressed.

“Structural reform of the department should proceed independently, while concession agreements are reviewed separately under their existing terms in the interest of good governance and transparency,” Amarjit explained.