A Look Back At The Sabah Watergate Scandal

A Look Back At The Sabah Watergate Scandal

A Look Back At The Sabah Watergate Scandal

Oct 1, 2024

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On 4 October 2016, a raid by the Malaysian Anti-Corruption Commission (MACC) on the Sabah Water Department’s (JANS) office led to what the commission referred to as its biggest bust. Confiscating RM114 million in assets and RM53.7 million in cash, the MACC also arrested the department’s director at the time Awang Mohd Tahir Mohd Talib along with his then-deputy Teo Chee Kong.

Piles of cash were allegedly found in the two civil servants’ homes and offices, in cupboards, safe boxes and bags. Aside from the money, the MACC also said it found 19kg of jewellery worth RM19 million, over 90 handbags worth RM500,000, nine luxury cars and 127 land grants.

Nearly a week later, the MACC valued the land grants at RM30 million and said it had tracked down another RM30 million the two suspects allegedly stashed in foreign banks.

"In the 49 years since the commission was set up, we have never seen this amount of money," Tan Sri Datuk Sri Azam Baki, who was deputy chief commissioner of the MACC at the time, told reporters.

Azam said the raid was conducted after about a year of investigations. The commission had received reports from the public about the unfair distribution of water development project contracts. MACC’s investigations revealed that projects had allegedly been awarded to companies linked to the two men.

“The suspects have allowed for the monopoly of projects and prevented other contractors from getting a fair share of business,” Azam was quoted as saying after the raid.

News reports claimed the two men had broken up projects into smaller portions to avoid the tender process. The two then allegedly awarded those projects at inflated prices. 

Laws dictated that projects below RM100,000 do not have to go through a tender process and can be signed off by the director or his deputy. 

On 29 December 2016, Awang Mohd Tahir, his wife Fauziah Piut and one Lim Lam Beng, a former JANS deputy director from 2004 to 2015, were charged in the Kota Kinabalu Special Court for Corruption under the Anti-Money Laundering Act (AMLA). 

Lim had allegedly been in possession of cash amounting to RM2.38 million at MACC’s Jalan UMS office and at a house in Kota Kinabalu between 13 October and 8 November 2016.

Nearly a year later, on 13 December 2017, Teo was charged with 147 counts under the same Act. However, on 18 February 2022, he was granted a discharge not amounting to an acquittal (DNAA) on all counts and was hit with an RM30 million compound. 

In March 2017, judge Abu Bakar Manat acquitted Teo of all 146 money-laundering charges after the prosecution had confirmed they no longer wished to pursue the case. Teo later became a prosecution witness.

The case against Awang Mohd Tahir, Fauziah and Lim is ongoing. 

Sabah is one of Malaysia’s poorest states and frequently faces water issues. Recently, in July, Kota Kinabalu was facing water disruptions which state deputy chief minister III Datuk Shahelmy Yahya pitted to a bump in tourism along with other factors. Earlier, in June, Universiti Malaysia Sabah (UMS) students protested against frequent water disruptions affecting the university and other parts of the state.

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