1 PART I PRELIMINARY-1. Short title, commencement and application.

(1) This Act may be cited as the Suruhanjaya Perkhidmatan Air Negara Act 2006 .

(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette .

(3) This Act applies to Peninsular Malaysia and the Federal Territories of Putrajaya and Labuan.

2 PART I PRELIMINARY-2. Interpretation.

In this Act, unless the context otherwise requires-

"  committee  " means a committee established by the Commission under section 13;

"  Fund  " means the Suruhanjaya Perkhidmatan Air Negara Fund established under section 27;

"  employees  " means persons employed by the Commission;

"  Chairman  " means the Chairman of the Commission appointed under paragraph 5(1) (a) ;

"  water supply services  " means the treatment of water abstracted from watercourses and the distribution and supply of treated water to consumers and includes the operation and maintenance of the water supply system;

"  sewerage services  " means the collection, conveyance, treatment and disposal

3 PART II THE COMMISSION-3. Establishment of the Commission.

(1) A body corporate by the name of "Suruhanjaya Perkhidmatan Air Negara" is established with perpetual succession and a common seal.

(2) The Commission may sue and be sued in its corporate name.

(3) Subject to and for the purposes of this Act, the Commission may, upon such terms as it deems fit-

(a) enter into contracts; and

(b) in respect of movable and immovable property and interest in movable and immovable property of every description-

(i) acquire, purchase and take such property and interest; and

(ii) hold, enjoy, convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer, or otherwise dispose of or deal with, such property and interest vested in the Commission.

4 PART II THE COMMISSION-4. Common seal.

(1) The common seal of the Commission shall bear a device as approved by the Commission and the seal may from time to time be broken, changed, altered and made anew as the Commission thinks fit.

(2) Until a seal is provided by the Commission, a stamp bearing the words "Suruhanjaya Perkhidmatan Air Negara" may be used and shall be deemed to be its common seal.

(3) The common seal shall be kept in the custody of the Chairman or any other person authorized by the Commission, and shall be authenticated by either the Chairman or by such other person authorized by the Chairman in writing.

(4) All deeds, documents and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (3) shall, until the contrary is proved, be deemed to have been validly executed.

(5) Any deed, document and other instrument which, if executed by a person not being a body corporate, is not required to

5 PART II THE COMMISSION-5. Membership of the Commission.

(1) The Commission shall consist of the following members who shall be appointed by the Minister:

(a) the Chairman;

(b) the Chief Executive Officer; and

(c) not less than eight but not more than ten other persons, who, in the opinion of the Minister, have experience and shown capacity and professionalism in matters relating to finance, engineering, business or administration, or to be otherwise suitable for appointment because of their special knowledge and experience.

(2) The provisions of the Schedule shall apply to members of the Commission.

(3) The Minister may amend the provisions of the Schedule by order published in the Gazette .

6 PART II THE COMMISSION-6. Temporary exercise of functions of the Chairman.

The Minister may appoint temporarily any member of the Commission, other than the Chief Executive Officer, to act as the Chairman for the period when-

(a) the office of the Chairman is vacant;

(b) the Chairman is absent from duty or from Malaysia; or

(c) the Chairman is, for any other reason, unable to perform the duties of his office.

7 PART II THE COMMISSION-7. Statutory declaration by members of the Commission.

(1) No person shall be appointed as a member of the Commission unless before such appointment the person makes a statutory declaration as to whether he has any interest, financial or otherwise, in any undertaking involving water supply services or sewerage services.

(2) If a member of the Commission acquires any interest, financial or otherwise, in any undertaking involving water supply services or sewerage services he shall, within one month after such acquisition, give notice in writing to the Minister specifying the interest acquired, and the Minister may, after taking the matter into consideration, if he thinks fit, declare that the member has vacated his office.

8 PART II THE COMMISSION-8. Approval to hold other office.

The Chairman shall not, while holding such office, hold any other office or employment, whether remunerated or not, without the Minister's prior written approval.

9 PART II THE COMMISSION-9. Tenure of office.

(1) Subject to such conditions as may be specified in his instrument of appointment, a member of the Commission shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term of two years.

(2) A member of the Commission shall be eligible for reappointment but no member shall hold office for more than three terms.

[Am. by Act A1699/2023]

(3) This section shall not apply to the Chief Executive Officer.

10 PART II THE COMMISSION-10. Remuneration and allowances.

(1) The Chairman shall be paid such remuneration and allowances as the Minister may determine after consultation with the Minister of Finance.

(2) All other members of the Commission shall be paid such allowances at such rates as the Minister may determine after consultation with the Minister of Finance.

11 PART II THE COMMISSION-11. Revocation of appointment and resignation.

(1) The Minister may at any time revoke the appointment of any member of the Commission, other than the Chief Executive Officer, without assigning any reason for the revocation.

(2) A member of the Commission, other than the Chief Executive Officer, may at any time resign from his appointment by giving a notice in writing to the Minister.

12 PART II THE COMMISSION-12. Vacation of office.

The office of a member of the Commission, other than the Chief Executive Officer shall be vacated-

(a) if he dies;

(b) if there has been proved against him, or he has been convicted on, a charge in respect of-

(i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under any law relating to corruption; or

(iii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

(c) if his conduct, whether in connection with his duties as a member of the Commission or otherwise, has been such as to bring discredit on the Commission;

(d) if he becomes a bankrupt;

(e) if he is of unsound mind or is otherwise incapable of discharging his duties;

(f) in the case of the Chairman, if he absents himself from a meeti

13 PART II THE COMMISSION-13. Committees.

(1) The Commission may establish any committee as it considers necessary or expedient to assist in the performance of its functions.

(2) The Commission may elect any of its members to be the chairman of a committee.

(3) The Commission may appoint any person to be a member of a committee.

(4) A member of a committee shall hold office for such term as may be specified in his letter of appointment and is eligible for reappointment.

(5) The Commission may revoke the appointment of any member of a committee without assigning any reason for the revocation.

(6) A member of a committee may, at any time, resign by giving a notice in writing to the chairman of the committee.

(7) The Commission may, at any time, discontinue or alter the constitution of a committee.

(8) A committee may regulate its own procedure.

(9) A committee shall be subject to, and act in accordance with, any direction given to i

14 PART II THE COMMISSION-14. Disclosure of interest.

(1) A member of the Commission or any committee established under section 13 who has or acquires a direct or indirect interest by himself, a member of his family or his associate in relation to any matter under discussion by the Commission or committee shall disclose to the Commission or committee, as the case may be, the fact of his interest and the nature of that interest.

(2) A disclosure under subsection (1) shall be recorded in the minutes of the meeting of the Commission or committee, as the case may be, in which the matter is discussed and, after the disclosure, the member-

(a) shall not be present or take part in any discussion or decision of the Commission or committee, as the case may be, about the matter; and

(b) shall be disregarded for the purpose of constituting a quorum of the Commission or committee, as the case may be, when the matter is discussed or decided upon.

15 PART III FUNCTIONS AND POWERS OF THE COMMISSION-15. Functions of the Commission.

The Commission shall have all the functions imposed on it under the water supply and sewerage services laws and shall also have the following functions:

(a) to advise the Minister on all matters in relation to the national policy objectives of the water supply and sewerage services laws and to implement and promote the national policy objectives;

(b) to implement and enforce the water supply and sewerage services laws and to consider and recommend reforms to the water supply and sewerage services laws;

(c) to ensure the productivity of the water supply services and sewerage services industry and the monitoring of operator compliance with stipulated service standards, contractual obligations and relevant laws and guidelines;

(d) to increase concerted efforts towards improving the operational efficiency of the industry and in particular the reduction of non-revenue water thr

16 PART III FUNCTIONS AND POWERS OF THE COMMISSION-16. Powers of the Commission.

(1) The Commission shall have the power to do all things necessary or expedient for or in connection with the performance of its functions under the water supply and sewerage services laws.

(2) Without prejudice to the generality of subsection (1), the powers of the Commission shall include power-

(a) to utilize all the property of the Commission, movable and immovable, in such manner as the Commission may think expedient including the raising of loans by mortgaging such property;

(b) to impose fees or charges for services rendered by the Commission;

(c) to appoint such agents, experts or consultants as it deems fit to assist the Commission in the performance of its functions;

(d) [Deleted by Act A1699/2023] ;

(e) to formulate and implement human resource development and funding and co-operation programmes for the proper and effective performance of

17 PART III FUNCTIONS AND POWERS OF THE COMMISSION-17. Delegation of the Commission's functions or powers.

(1) The Commission may, in writing, delegate any of the functions and powers imposed or conferred on it by the water supply and sewerage services laws, except the power to make subsidiary legislation, to-

(a) the Chairman;

(b) a member of the Commission;

[Am. by Act A1699/2023]

(c) a committee; or

[Am. by Act A1699/2023]

(d) any employee of the Commission.

[(d) Ins. by Act A1699/2023]

(2) Any person delegated with such function and power shall be bound to observe and have regard to all conditions and restrictions imposed by the Commission and all requirements, procedures and matters specified by the Commission.

(3) Any function and power delegated under this section shall be performed and exercised in the name and on behalf of the Commission.

(

18 PART III FUNCTIONS AND POWERS OF THE COMMISSION-18. Direction by Minister.

(1) The Commission shall be responsible to the Minister.

(2) The Minister may give the Commission directions of a general character consistent with the provisions of this Act relating to the performance of the functions and powers of the Commission and the Commission shall give effect to such directions.

19 PART III FUNCTIONS AND POWERS OF THE COMMISSION-19. Returns, reports, accounts and information.

(1) The Commission shall furnish to the Minister, and any public authority as may be specified by the Minister, such returns, reports, accounts and information with respect to its activities and finances as the Minister may from time to time require or direct.

(2) The returns, reports, accounts and information shall be in such form and shall contain such information relating to the proceedings and policy of the Commission and any other matter as the Minister may from time to time specify.

19A PART III FUNCTIONS AND POWERS OF THE COMMISSION-19A. Restriction on the use of the symbol or representation of the Commission.

(1) The Commission shall have the exclusive right to the use of any symbol or representation as the Commission may select or create and thereafter display or exhibit such symbol or representation in connection with its activities or affairs.

(2) The symbol or representation selected or created by the Commission shall be published in the Gazette.

(3) Any person who uses a symbol or representation of the Commission without obtaining the written approval of the Commission, or uses any symbol or representation resembling the symbol or representation of the Commission, or creates any symbol or representation which refers to the Commission so as to deceive or cause confusion, or to be likely to deceive or to cause confusion, commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

[Ins. by Act A1699/

20 PART IV PROVISIONS RELATING TO EMPLOYEES-20. Chief Executive Officer.

(1) The Minister shall appoint a Chief Executive Officer on such terms and conditions as he thinks desirable.

(2) The Commission shall vest in the Chief Executive Officer such powers and impose upon him such duties as may be determined by the Commission.

(3) The Chief Executive Officer shall be responsible for the overall administration and management of the functions and the day to day affairs of the Commission.

(4) The Chief Executive Officer shall have general control of the employees of the Commission.

(5) The Chief Executive Officer shall perform such further duties as the Minister and the Commission may from time to time direct.

(6) In discharging his duties, the Chief Executive Officer shall act under the general authority and directions of the Commission.

21 PART IV PROVISIONS RELATING TO EMPLOYEES-21. Temporary exercise of functions of the Chief Executive Officer.

The Minister may appoint temporarily any officer of the Commission to act as the Chief Executive Officer for the period when-

(a) the office of the Chief Executive Officer is vacant;

(b) the Chief Executive Officer is absent from duty or from Malaysia; or

(c) the Chief Executive Officer is, for any other reason, unable to perform the duties of his office.

22 PART IV PROVISIONS RELATING TO EMPLOYEES-22. Appointment of employees.

The Commission may from time to time appoint and employ such number of employees as the Commission thinks desirable and necessary and upon such terms as it considers appropriate for carrying out the purposes of the water supply and sewerage services laws.

23 PART IV PROVISIONS RELATING TO EMPLOYEES-23. Conditions of service.

The Commission may, determine the conditions of service of its employees.

[Am. by Act A1699/2023]

23A PART IV PROVISIONS RELATING TO EMPLOYEES-23A. Discipline.

(1) The Commission shall have disciplinary authority over all its employees and shall exercise disciplinary control in respect of all such persons.

(2) The Commission may make regulations in respect of discipline of its employees.

[Ins. by Act A1699/2023]

24 PART IV PROVISIONS RELATING TO EMPLOYEES-24. Loans, scholarships and advances.

The Commission may grant loans, scholarships and advances to its employees for such purposes and on such terms as the Commission may determine.

25 PART IV PROVISIONS RELATING TO EMPLOYEES-25. Payment of retirement benefits, etc.

The Commission may make arrangements for the payment to its employees and their dependants of such retirement benefits, gratuities and other allowances as the Commission may determine.

26 PART IV PROVISIONS RELATING TO EMPLOYEES-26. Commission may adopt regulations, etc..

The Commission may, with the approval of the Minister, adopt with such modifications as it deems fit any regulations, rules, policies, circulars and directives enacted or issued by the Federal Government in relation to any matter under this Part.

27 PART V FINANCE-27. Suruhanjaya Perkhidmatan Air Negara Fund.

(1) A fund to be known as the "Suruhanjaya Perkhidmatan Air Negara Fund" is established and shall be administered and controlled by the Commission.

(2) The Fund shall consist of-

(a) such sums as may be provided by Parliament for the purposes of the water supply and sewerage services laws from time to time;

(b) all or any part of the licence fees or other fees, administration charges, levies or other charges imposed by or payable to the Commission under the water supply and sewerage services laws;

(c) all moneys derived as income from investments by the Commission;

(d) all moneys derived from the sale, disposal, lease or hire, or any other dealing with, any property, mortgages, charges or debentures vested in or acquired by the Commission;

(e) all moneys earned from consultancy and advisory services and any other service provided by the Commission;

28 PART V FINANCE-28. Expenditure to be charged on the Fund.

The Fund shall be expended for the following purposes:

(a) paying any expenditure lawfully incurred by the Commission;

(b) paying for the remuneration, allowances and other expenses of the members of the Commission, members of the committees and employees of the Commission, including the granting of loans and advances, superannuation allowances, retirement benefits and gratuities;

(c) paying any other expenses, costs or expenditure in relation to the procurement of goods and services, including the engagement of consultants, legal fees and costs and other fees and costs, properly incurred or accepted by the Commission in the performance of its functions and exercise of its powers under the water supply and sewerage services laws;

(d) purchasing or hiring equipment, machinery and any other material, acquiring land and any assets, and erecting buildings and carrying out any

29 PART V FINANCE-29. Conservation of the Fund.

It shall be the duty of the Commission to conserve the Fund by so performing its functions and exercising its powers under this Act to secure that the total revenue of the Commission are sufficient to meet all sums properly chargeable to its revenue account including depreciation and interest on capital taking one year with another.

30 PART V FINANCE-30. Expenditure and preparation of estimates.

(1) The expenditure of the Commission up to such amount as may be authorized by the Minister for any one year shall be defrayed out of the Fund.

(2) Before 1 September of each year, the Commission shall submit to the Minister an estimate of its expenditure (including the expenditure for research and development programmes) for the following year in such form and containing such particulars as the Minister may direct.

(3) The Minister shall, before 1 January of the following year, notify the Commission of the amount authorized for expenditure generally or of the amount authorized for each description of expenditure based on the estimate prepared under subsection (2).

(4) The Commission may at any time submit to the Minister a supplementary estimate of its expenditure for any one year and the Minister may allow the whole or any part of the additional expenditure included in the supplementary estimate.

31 PART V FINANCE-31. Bank accounts.

The Commission shall open and maintain an account or accounts with such bank or banks in Malaysia as the Commission thinks fit, and every such account shall be operated in such manner as may be authorized by the Commission for such purpose from time to time.

[Am. by Act A1699/2023]

32 PART V FINANCE-32. Power to borrow.

The Commission may, from time to time, borrow in such form and at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise, as may be approved by the Minister with the concurrence of the Minister of Finance, any money required by the Commission for meeting any of its obligations or discharging any of its duties.

33 PART V FINANCE-33. Investment.

The moneys of the Commission shall, in so far as they are not immediately required to be expended by the Commission under this Act, be invested in such manner as the Minister may, with the concurrence of the Minister of Finance, approve.

34 PART V FINANCE-34. Limitations on contracts.

The Commission may enter into any contract under which the Commission is to pay or receive an amount-

(a) not exceeding ten million ringgit;

(b) exceeding ten million ringgit but not exceeding fifty million ringgit, with the approval of the Minister; or

(c) exceeding fifty million ringgit, with the approval of the Minister and the concurrence of the Minister of Finance.

[Subs. by Act A1699/2023]

35 PART V FINANCE-35. Financial procedure.

Subject to this Act, the Commission shall determine its own financial procedure.

[Am. by Act A1699/2023]

36 PART V FINANCE-36. Financial year.

The financial year of the Commission shall begin on 1 January and end on 31 December of each year.

37 PART V FINANCE-37. Accounts and reports.

(1) The Commission shall cause proper accounts of the Fund and proper reports of its activities to be kept and shall, as soon as practicable after the end of each financial year, cause to be prepared for that financial year-

(a) a statement of accounts of the Commission which shall include a balance sheet and an account of income and expenditure; and

(b) a statement of its activities.

(2) The Commission shall as soon as possible send a copy of the statement of accounts certified by the auditors and a copy of the auditors' report to the Minister who shall cause them to be laid before both Houses of Parliament.

(3) The Statutory Bodies (Account and Annual Reports) Act 1980 [ Act 240 ] shall apply to the Commission.

38 PART VI GENERAL-38. Prosecution.

No prosecution shall be instituted for any offence under this Act without the consent in writing of the Public Prosecutor.

39 PART VI GENERAL-39. Public servant.

The Chairman, members of the Commission and of any committee, and employees and agents of the Commission, while discharging their duties under this Act as Chairman, such members, employees or agents, shall be deemed to be public servants within the meaning of the Penal Code [ Act 574 ].

40 PART VI GENERAL-40. Public Authorities Protection Act 1948.

The Public Authorities Protection Act 1948 [ Act 198 ] shall apply to any action, suit, prosecution or proceedings against the Commission or a member of the Commission, a member of a committee, and an employee or agent of the Commission in respect of any act, neglect or default done or committed by him in good faith or any omission omitted by him in good faith in such capacity.

41 PART VI GENERAL-41. Obligation of secrecy.

(1) Except for any of the purposes of this Act or for the purposes of any civil or criminal proceedings under any written law or where otherwise authorized by the Commission-

(a) no member of the Commission or any of its committees or any employee or agent of the Commission or any person attending any meeting of the Commission or any of its committees, whether during or after his tenure of office or employment, shall disclose any information obtained by him in the course of his duties; and

(b) no other person who has by any means access to any information or documents relating to the affairs of the Commission shall disclose such information or document.

(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

42 PART VI GENERAL-42. Representation in civil proceedings.

Notwithstanding any other written law-

(a) in any civil proceedings by or against the Commission; or

(b) in any other civil proceedings in which the Commission is required or permitted by the court to be represented, or to be heard, or is otherwise entitled to be represented or to be heard,

any person authorized by the Commission for that purpose may, on behalf of the Commission, institute such proceedings or appear in such proceedings and may make all appearances and applications and do all acts in respect of the proceedings on behalf of the Commission.

43 PART VI GENERAL-43. Power to employ.

The Commission may employ and pay agents and technical advisers, including advocates and solicitors, bankers, consultants and other persons, to transact any business or to do any act required to be transacted or done in the performance of its functions or for the better carrying into effect of the purposes of this Act.

44 PART VI GENERAL-44. Things done in anticipation of the enactment of this Act.

All things done by any person or authority on behalf of the Commission in the preparation of and towards the proper administration of this Act, and any expenditure incurred in relation thereto, in anticipation of the enactment of this Act shall be deemed to have been authorized by this Act, and all rights acquired or obligations incurred on behalf of the Commission from anything so done shall upon the coming into operation of this Act be deemed to be the rights and obligations of the Commission.