What lopsided deals were made by Sabah Water Department?

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Review of Contracts Expected to Yield RM1 Billion in Savings

The Sabah Water Department is undertaking a review of contracts with six companies managing 58 water treatment plants and dams, a process expected to save the state approximately RM1 billion. These agreements, spanning over two decades, involved payments totalling around RM3.7 billion for facility oversight, with concerns that the funds were not utilised for their intended management purposes, leading to significant wastage.
Contracts Awarded by Previous Administration

The contracts in question were reportedly approved by the previous Barisan Nasional (BN) government. Specific approval came from former chief ministers and the infrastructure development minister of that administration. These agreements are now being examined for terms deemed not beneficial to the state government.
Allegations of Misappropriated Funds and Wastage

Concerns have been raised that the approximately RM3.7 billion paid to contractors over a 20-year period for the management of 58 water treatment plants and dams was not used for its designated purpose. It is alleged that contractors continued to claim payments for works exceeding RM5,000 despite this alleged misappropriation, contributing to substantial wastage.
Restructuring and Savings Potential

The Sabah Water Department plans to restructure these existing deals with the six contracting companies. This restructuring initiative is anticipated to result in savings of around RM1 billion. Changes are expected to be implemented within a timeframe of six months to a year, following a thorough study of the contract terms.
Reporting to MACC Underway

In light of the findings and concerns regarding these agreements, a report has been lodged with the Malaysian Anti-Corruption Commission (MACC). This action follows a 2016 scandal involving the department, where MACC arrested senior officials and seized cash and assets in connection with alleged abuse of power related to RM3.3 billion in federal-funded projects.

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What lopsided deals were made by Sabah Water Department?

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