Malaysia

Former Sabah water department director convicted in money laundering case

High Court acquits wife and former deputy director of all charges after ruling prosecution failed to establish their involvement under anti-money laundering laws

Updated 3 months ago · Published on 19 May 2026 12:53PM

Former Sabah water department director convicted in money laundering case
Ag Mohd’s conviction marks one of the most prominent outcomes involving anti-money laundering prosecutions linked to public sector administration in Sabah in recent years (Photo from NSTP) - May 19, 2026

FORMER Sabah Water Department director Ag Mohd Tahir has been found guilty of offences under Malaysia’s Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 following a lengthy court trial involving allegations linked to unlawful financial activities.

However, his wife, Fauziah Piut, and former Sabah Water Department deputy director Lim Lam Beng, were acquitted after the court ruled that the prosecution had failed to prove the charges against them beyond reasonable doubt.

The decision was delivered by Judge Abu Bakar Manat after what the court described as a comprehensive assessment of testimony presented by prosecution and defence witnesses, as well as statements made by all three accused individuals throughout the proceedings.

The case attracted widespread public attention due to its connection with the Sabah Water Department, which had previously faced scrutiny over alleged corruption and abuse of public funds.

In delivering his ruling, the judge said the court had carefully considered all documentary evidence, witness testimony and legal submissions before reaching its final decision.

Ag Mohd Tahir’s conviction marks one of the most prominent outcomes involving anti-money laundering prosecutions linked to public sector administration in Sabah in recent years.

Meanwhile, Fauziah and Lim were discharged and acquitted of all charges, bringing an end to proceedings against them after the court determined that insufficient evidence existed to establish criminal liability under the anti-money laundering legislation. - May 19, 2026

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