KUALA LUMPUR (Nov 28): Former Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim and current Menteri Besar Datuk Seri Mohamed Azmin Ali have applied to strike out Puncak Niaga Holdings Bhd's RM14 billion lawsuit against the duo and the Selangor state government over the takeover of the state's water industry.

Khalid said in a statement posted on his Facebook page today that his lawyers have filed an application to strike out the claim made by Puncak Niaga.

Meanwhile, Azmin was quoted by a local news daily today as saying that he had instructed his lawyers who are representing him and the Selangor state government to apply to strike out the suit.

In a filing with Bursa Malaysia, Puncak Niaga said that at the case management held today, the judge had made directions for the filing of pleadings, the exchange of affidavits and submissions in respect of Khalid's application to strike out the claim as well as pre-trial case management direction.

Khalid's striking out application is now fixed for decision on Jan 23, 2018, and the next case management for the parties to comply with pre-trial case management directions is on Feb 12. The trial dates are scheduled for Mar 28-30.

Meanwhile, the judge has also directed the parties to attempt mediation in January.

In his statement, Khalid said he has been advised that the claim by Puncak Niaga is frivolous and a misuse of the powers of the court.

"Whatever the court's decision may be later, and if it has been fixed for trial, I will state the truth on all conditions pertaining to the Selangor water restructuring, most importantly in regards to Puncak Niaga," he said.

"At the material time, I had acted in line with the laws and have upheld the principles of both the federal and state constitutions," he said.

Puncak Niaga had on Nov 21 announced that Khalid and Azmin had abused their powers by threatening to cause, or attempting to cause, the federal government to invoke the use of the Water Services Industry Act 2006 to force a takeover of the state's water industry.

The company had said the Selangor government is vicariously liable for the acts of Khalid and Azmin.

In his statement today, Khalid stressed that the water issue is important as it involves the basic rights of the people.

"Water cannot be sold and bought like a normal commodity. The purpose of reaping extraordinary profit or extending personal gains for the parties involved [in the deal] should not be the main focus of the ruling government, be it the state or the federal government.

"I would also like to remind the current state government that the Selangor water industry restructuring has to be done in a transparent and responsible manner, so that the people are not burdened with excessive costs.

"It is very disappointing that the state government has not made an open offer yet to Syarikat Pengeluar Air Selangor Holdings Bhd [Splash] or have taken any legal action against the concessionaire so that the water restructuring can go smoothly for the wellbeing of the people," he said.

Splash, which is a 40% associate of Gamuda Bhd, is the holding company of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (the concession holder of Sungai Selangor Water Supply Scheme Phase 1 and 3).

The other shareholders of Splash are Sweetwater SPV Sdn Bhd (the private vehicle of businessman Tan Sri Wan Azmi Wan Hamzah) and Viable Chip (M) Sdn Bhd (a unit of Kumpulan Perangsang Selangor Bhd), which own 30% stakes each.

Discussions between the Selangor government and the shareholders of Splash on the purchase price have been ongoing for some time.