Malaysia

Warisan defends decision to end water plant concessions

The Watergate corruption scandal saw RM3 million in cash hidden in a government office and over RM100 million in assets seized.

Updated 2 years ago · Published on 25 Sep 2024 11:55AM

Warisan defends decision to end water plant concessions
Shafie said Sabah's water crisis stems from decades of mismanagement, deteriorating infrastructure, and inadequate investment,

by Jason Santos

WARISAN president Datuk Seri Mohd Shafie Apdal has defended his administration’s decision in 2018 to terminate 20-year concessions for managing 58 water treatment plants in Sabah.

The move, made when Warisan and partners governed the state, received heavy criticism from Chief Minister Datuk Seri Hajiji Noor, who blamed it for the state’s ongoing water woes at a party function held in Kunak recently.

Shafie countered that the contracts were heavily lop-sided and linked to Sabah's infamous "watergate scandal" under the Barisan Nasional (BN) administration led by Tan Sri Musa Aman, which Hajiji was part of then.

"The decision was made not only to address the inequitable terms but also to enhance water management across the state," Shafie said.

Shafie served as chief minister from May 2018 to September 2020, with Datuk Peter Anthony overseeing waterworks at the time.

He noted that the termination saved the state RM12 million monthly, as the six companies, appointed in 2013, were costing RM15.5 million per month.

Despite paying RM315 million in compensation, the state avoided RM 685 million in costs over the 20-year contract, he said. 

Shafie said the 1,335 employees from these companies were also absorbed into the Sabah Water Department, which took over the plant's operations and maintenance ever since.

Shafie also said that Hajiji, now the GRS-led government’s chief minister, was part of the previous administration involved in one of Malaysia’s largest corruption probes.

The Watergate corruption scandal saw RM3 million in cash hidden in a government office and over RM100 million in assets seized.

He said the worsening water crisis in Sabah only happened during the current GRS administration, citing issues such as saline intrusion in Sandakan, water shortages at Universiti Malaysia Sabah, and frequent disruptions across the state.

He said Sabah's water crisis stems from decades of mismanagement, deteriorating infrastructure, and inadequate investment, but stressed that the situation has only worsened under Hajiji’s leadership.

“Hajiji’s claim that Warisan is responsible for the current water problems is baseless and a deflection from the GRS administration’s failures,” said Shafie, urging the government to focus on solutions rather than shifting blame. – September 25, 2024

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