Malaysia

Sabah ex-water director jailed 8 years, fined RM284.3m in landmark money laundering case

Ag Mohd Tahir Mohd Talib convicted on all 12 charges after court rules prosecution proved unlawful financial activities beyond reasonable doubt, while wife and former deputy director are acquitted

Updated 3 months ago · Published on 19 May 2026 5:28PM

Sabah ex-water director jailed 8 years, fined RM284.3m in landmark money laundering case
The 63-year-old will serve only eight years out of a total of a 96 year prison sentence after the court orders all jail terms to run concurrently from the date of conviction - May 19, 2026

A SPECIAL Corruption Court in Kota Kinabalu has sentenced former Sabah Water Department director Ag Mohd Tahir Mohd Talib to a total of 96 years’ imprisonment and imposed a staggering RM284.3 million fine after finding him guilty on 12 counts of money laundering linked to unlawful activities.

However, the 63-year-old will serve only eight years in prison after Judge Abu Bakar Manat ordered all jail terms to run concurrently from the date of conviction.

The court further ordered that Ag Mohd Tahir serve an additional 78 months’ imprisonment should he fail to pay the fine imposed.

Despite the conviction, the court allowed a stay of execution pending appeal.

The ruling marks one of Malaysia’s most high-profile anti-money laundering convictions involving a senior public official and follows a lengthy trial tied to allegations of illicit wealth and abuse within the Sabah Water Department.

In delivering judgment, Judge Abu Bakar Manat ruled that the defence had failed to raise a reasonable doubt against the prosecution’s case, particularly concerning the essential elements of the offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

The judge said the explanations offered by Ag Mohd during the defence stage were merely “afterthoughts” raised only after raids and inspections were conducted by the Malaysian Anti-Corruption Commission (MACC) at his office, residence and vehicles.

“The court views the explanations as something conceived after the incident and finds them insufficient to create reasonable doubt or rebut the evidence presented by prosecution witnesses,” the judge ruled.

Meanwhile, Ag Mohd’s wife, Fauziah Piut, 61, and former Sabah Water Department deputy director Lim Lam Beng, 72, were discharged and acquitted of all charges after the court ruled it was unsafe to convict them.

Fauziah was also cleared of two joint charges with her husband after prosecutors failed to establish the element of common intention.

The three accused were first charged on Dec 28, 2016, and all pleaded not guilty.

Ag Mohd Tahir faced 11 charges under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, as well as one additional charge under Section 4(1)(a) of the same law.

Fauziah faced 19 charges under the same legislation, in addition to two joint charges with Ag Mohd Tahir under Section 4(1)(b) read together with Section 34 of the Penal Code.

The offences allegedly took place between Oct 4 and Nov 4, 2016, at multiple locations, including the Sabah Water Department office, a residence in Sembulan, several bank branches, a condominium in Sulaman and a tower block in Kuala Lumpur.

Lim faced four charges linked to possession of a Toyota Land Cruiser, RM200,000 in cash, RM1.9 million, and RM280,000 allegedly derived from unlawful activities between Oct 13 and Nov 8, 2016.

Following several postponements, the trial began on May 7, 2018, with prosecutors calling 46 witnesses throughout the proceedings.

The defence later called 15 witnesses, including former Sabah chief minister Joseph Pairin Kitingan and former minister Raymond Tan Shu Kiah.

Fauziah chose to give an unsworn statement during her defence, while Lim testified under oath as the sole witness for his defence.

The prosecution team was led by deputy public prosecutors Mahadi Jumaat, Haresh Prakash Somiah and Zander Lim.

Ag Mohd Tahir and Fauziah were represented by lawyers Ansari Abdullah, Sharatha Masyaroh John Ridwan Lincon, Fadzidahtul Ardianah, Rasrina Patrick T Rining and Noorsyazwani Sapri, while Lim was represented by Tan Hock Chuan, Baldev Singh and Kelvin Wong. - May 19, 2026

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