Malaysia

Shafie: Terminating water concessions did not cause Sabah financial losses

He said water problems in Sabah persisted long before Warisan came into power.

Updated 1 year ago · Published on 12 Mar 2025 4:51AM

Shafie: Terminating water concessions did not cause Sabah financial losses
Sabahans were forced to buy water from third parties, said Shafie - March 12, 2025

by Jason Santos

WARISAN president Datuk Seri Mohd Shafie Apdal  dismissed claims that terminating water concession contracts caused Sabah’s financial losses, saying water shortages remained even when private firms were in charge.

He said the problem existed long before Warisan took power. 

The concessions failed to fix it. Instead, they turned water into a business, forcing villagers to buy what should have been a public service, he said. 

“The water issue has been there for a long time. Even before Warisan, water in Sabah was already rationed,” he said.

Pipes leaked, entire villages went without clean water, and yet concessionaires kept collecting payments.

People were left with no choice but to buy water from third parties while the state supply remained unreliable.

“In some villages, people don’t get water from the pipes, but they can buy water from others. Why is that happening?” he asked.

He said Warisan’s decision to terminate the contracts was about plugging financial leakages, just as the Prime Minister has done at the federal level.

“If the Prime Minister is taking action on financial leakages, why shouldn’t we do the same? We terminated the contracts because they were not solving the problem,” he said.

The state government claimed the terminations caused RM315 million in losses, but Shafie argued Sabah had already been bleeding money. 

For instance, Shafie pointed to the RM44 million allocated annually to the Deputy State Secretary as an example, demanding answers over nearly RM80 million spent in wo years.

“I asked the Deputy State Secretary, last year it was RM44 million, this year it’s RM44 million. 

“Almost RM80 million over two years. Where is that money? What is its purpose?” he said.

He dismissed concerns over job losses, saying all concessionaire employees were absorbed into the water department.

"We terminated [the contracts] to streamline the department, but we included all the former employees of the concessionaire companies into the water department. They were not terminated. Instead, we strengthened the workforce,” he said.

Shafie warned that without accountability, Sabahans will continue to suffer while profiteering from water shortages thrives – March 12, 2025 

Related News

Malaysia / 14h

Sabah does not agree to 200-litre diesel quota, forms special committee - Masidi

Malaysia / 1mth

Tsunami alert: Stay calm and obey instructions from the authorities – Hajiji (video)

Malaysia / 1mth

Penang water tariffs to increase from July 1 after year-long deferment

Malaysia / 1mth

Sabah embarks on five-year initiative to document multiethnic heritage - Hajiji

Malaysia / 1mth

Anwar - Sabah's special grant interim payment increased from RM600m to RM1.5b

Malaysia / 1mth

Anwar to clarify Sabah 40 pct entitlement talks tomorrow

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Malaysia

Telco identifies suspect in data breach as MCMC demands full report

Malaysia

eFishery loss will not jeopardise KWAP’s finances or pension payments - Tengku Zafrul

Malaysia

AGC orders inquest into deaths of three men in Durian Tunggal police shooting

Malaysia

Dataran Merdeka filled with rubbish after World Cup final

Malaysia

Anwar: Malaysia’s debt ratio is falling, but legacy debt payments remain a heavy burden

Malaysia

BN-PH ties strained by grassroots reality, not Putrajaya pact, says analyst

By Alfian Z.M. Tahir

Malaysia

Fahmi accuses KJ of playing race, religion card to rebuild political relevance

Malaysia

Federal Govt passes RM83.46m in flood mitigation, coastal protection projects to Selangor