Last 26 September, Parti Warisan accused six concession companies of undertaking work under lopsided contracts pertaining to the operation of water treatment plants (WTP) in Sabah.

The six companies; Yuda Water Sdn Bhd, Sahabat Megajuta Sdn Bhd, Arawira Sdn Bhd, BYT Vision Sdn Bhd, Harmony Water Sdn Bhd and Akal Kukuh Sdn Bhd; were allegedly awarded a total of nine 20-year outsourcing contracts between 2009 and 2015. These contracts were awarded under the state’s Water Plant Management Services Program.

The party pointed out several contentions in the contracts including that maintenance costs were stated as a lump sum. Meanwhile, no penalty clause was found in the contracts should the work not be carried out.

“This made it difficult to determine the cost of unperformed maintenance due to the lack of detailed specifications,” the party said in a statement signed by its vice president Datuk Junz Wong and information chief Datuk Azis Jamman.

“On 12 December 2018, the Warisan Plus government decided to terminate outsourcing contracts through the Water Plant Management Services Program,” the party said, adding that all involved companies were given a 30-day termination notice effective 15 January 2019.

Warisan was responding to Sabah Chief Minister Datuk Seri Hajiji Noor who claimed that the termination of nine concession companies in 2019 by the then Warisan government was the main cause of current water issues.

Warisan, however, said its decision to terminate these contracts were warranted based on the findings in the 2019 Auditor-General's Report on the Sabah Water Department (JANS).

The party said the auditor’s report noted that weaknesses in the contract terms did not protect the government’s interests and posed risks of compensation claims by the contractors.

Warisan also revealed that the auditor's visit to the 11 outsourced WTP in November 2018 and January 2019 found that the WTP areas and facilities were not properly maintained as stipulated in the contract.

“Equipment such as water pumps, CCTV systems, chemical alarm systems, and SCADA systems were not maintained or repaired.

“The audit found weaknesses in the maintenance of the plant's facility area stemming from a lack of monitoring and enforcement.”

Schedule 19 of the auditor’s report showed several issues pertaining to the maintenance of the 11 WTP. The actual value of unperformed maintenance work could also not be determined as the monthly maintenance costs were stated as a lump sum.

The report noted that this lump sum, totalling RM205,624.45 a month for the 11 WTP, also included the maintenance of furniture and fittings for the administration building and staff quarters.

The auditor’s report also showed several images of faulty and damaged equipment as proof that the concessionaires had failed to carry out proper maintenance work on the WTP in the state.

The party claimed the auditor’s report vindicated its decision to terminate the contracts during its tenure.

It said the decision was also made in accordance with its pledge in the 2018 election to get to the bottom of Sabah’s infamous watergate scandal.

“JANS’s overall performance improved as of September 2019, after the termination of these six companies and the Warisan Plus government managed to save over RM600 million.”

The Sabah watergate scandal refers to an ongoing corruption case that began between 2015 to 2016 involving the then JANS director and deputy director.