Analyzing the RM1.5B JANS Water Project Controversy: Fact Check

Analyzing the RM1.5B JANS Water Project Controversy: Fact Check

Analyzing the RM1.5B JANS Water Project Controversy: Fact Check

Mar 4, 2025

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🇬🇧 ENG

The recent controversy surrounding Sabah's RM1.5 billion water supply project has sparked intense debate between opposition leaders and government officials. This article aims to analyze and fact-check statements from both parties based on available evidence and documentation.

Background

In late 2024, Datuk Junz Wong, Vice President of Parti Warisan, raised concerns about a proposed RM1.5 billion water supply project in Sabah. Wong alleged lack of transparency, potential corruption, and improper involvement of state-owned entities in the project.

Key Claims and Fact Check

1. Existence of the Project

Claim: Datuk Nizam Salleh, State Secretary, denied the existence of any agreement for the water supply project, labeling it "fake news."

Fact Check: The Letter of Intent (LOI) dated September 13, 2024, clearly shows the government's intention to appoint Tegas Potensi Sdn. Bhd. for the "NRW AND WATER SUPPLY MANAGEMENT THROUGH PRIVATE FINANCE INITIATIVE (PFI) FOR THE STATE OF SABAH" project. This contradicts Nizam's claim that the project doesn't exist.

2. Purpose of the Letter of Intent

Claim: Nizam stated that the LOI is only for a feasibility study.

Fact Check: The LOI does not explicitly mention a feasibility study. Instead, it outlines steps towards potential project implementation, including discussions on official appointment approval, project funding, contract sum agreement, and other specifics.

3. Involvement of Sabah Credit Corporation (SCC)

Claim: Nizam stated that SCC has not been appointed as the financier for the Private Finance Initiative (PFI).

Fact Check: While the LOI doesn't mention SCC, evidence provided by Wong shows that SCC's CEO attended a proposal meeting for the project. This suggests some level of involvement, contradicting Nizam's claim of SCC's non-involvement. Wong has also referenced official documents that show Sabah Credit Corporation (SCC) as an associated partner for Tegas Potensi Sdn Bhd in the water supply project along with WSO Sdn Bhd.



4. Transparency and Open Tender

Claim: Wong alleges lack of transparency and absence of an open tender process.

Fact Check: The LOI indicates direct appointment of Tegas Potensi Sdn. Bhd. without mentioning an open tender process. This supports Wong's claim about lack of transparency in the selection process.

5. Company Credentials

Claim: Wong questions the credentials and capability of Tegas Potensi Sdn. Bhd.

Fact Check: Available information does not provide details about Tegas Potensi Sdn. Bhd.'s track record in water management projects. Further investigation would be needed to verify this claim.

Analysis

  1. Project Existence: The LOI provides strong evidence that the project is indeed being considered, contrary to Nizam's denial.

  2. LOI only for Feasibility Studies: The LOI does not explicitly mention a feasibility study. Instead, it outlines steps towards potential project implementation

  3. Transparency Issues: The lack of an open tender process and direct appointment of a company raise legitimate concerns about transparency.

  4. SCC Involvement: While not conclusive, evidence suggests some level of SCC involvement, contradicting official statements.

  5. Historical Context: Given Sabah's history with water-related corruption scandals, the concerns raised by Wong warrant serious consideration and thorough investigation.

Conclusion

Based on the available evidence, several of Datuk Junz Wong's claims appear to have merit, particularly regarding the project's existence and transparency issues. The government's denials and characterizations of these claims as "fake news" are not supported by the documented evidence.

However, some aspects, such as the full extent of SCC's involvement and the credentials of Tegas Potensi Sdn. Bhd., require further investigation for a complete assessment.

This controversy underscores the need for greater transparency in large-scale public projects. Given Sabah's history with water-related corruption, it is crucial for the government to address these concerns openly and comprehensively to maintain public trust.

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