Water fiasco: RM114 million seized from Sabah water officials

https://youtu.be/01stOYgM9x0

It was a record haul by the Malaysian Anti-Corruption Commission – RM114mil seized from two top officers of the Sabah Water Department, comprising RM53.7mil in cash found in their homes and offices as well as RM60mil in bank accounts. Also seized were luxury cars, jewellery, land titles, branded watches and designer handbags. MACC expects to uncover more as it seeks to access five bank safes and foreign accounts.

It came as a shock to even the most seasoned graftbusters.

Lap of luxury: The MACC displaying the cars seized from both the director and his deputy during the press conference in Kota Kinabalu. Inset: The bags in the boot of the accused’s car were believed to have contained vast amounts of cash.

In the biggest ever seizure in its 49year history, the Malaysian AntiCorruption Agency (MACC, formerly the AntiCorruption Agency) recovered RM114mil from the top two officials of the Sabah Water Department – including RM53.7mil in cold hard cash that took more than 30 officers 15 hours to count.

Also recovered from the homes and offices of the department’s director and his deputy were nine mostly luxury vehicles, expensive watches, jewellery and 94 highend handbags.

The cash – RM45mil seized from the director and RM7.5mil from his deputy – was found stashed inside safes, cupboards, drawers and also a car boot, according to the MACC.

Also seized was RM1.18mil in over halfadozen foreign currencies.

The two senior state civil officers were arrested yesterday and remanded for a week for investigations into alleged kickbacks involving RM3.3bil worth of federal projects.

“It is the highest amount of cash we have ever recovered in our history as MACC or when we were known as the AntiCorruption Agency,” newlypromoted MACC deputy chief commissioner (operations) Datuk Azam Baki told a news conference here.

A 55yearold businessman with a Datuk title, who is believed to be the brother of the deputy director, and his company accountant have also been arrested in connection with the probe.

In what is shaping up to be the nation’s biggest corruption and money laundering investigations, the MACC has frozen some RM60mil in accounts of the two officials and also the company they purportedly have links to.

“In cash and bank accounts, we have seized RM114mil in total,” Azam said.

MACC, he added, believed that a large sum of money might also have been channelled to bank accounts in a neighbouring country.

“We will make an effort to get the money back,” he said without disclosing the country or the suspected amount in the accounts.

MACC is also in the process of trying to open five safes at a bank where they expect to recover more cash, said Azam, adding that they needed to follow bank rules to access the safes.

The MACC team also found 127 land titles worth millions of ringgit.

Among the vehicles seized were a BMW 535i (which costs RM500,000), MercedesBenz C300 (RM308,000), Range Rover SE V8 (RM1.1mil), Mazda6 (RM195,000), Volvo XC60 (RM270,000), Lexus ES (RM260,000), Audi A1 (RM180,000) and Ford Ranger (RM112,000).

 

Photo: The Star/ANN

The make of the ninth vehicle is unknown. In all, the cars total some RM3mil in value.

The luxury watches comprised brands like Patek Philippe, Tag Heuer, Rolex, Cartier and Guess while the handbags included Chanel, Burberry, Versace, Louis Vuitton and Hermes.

“We are checking the authenticity of the branded goods and jewellery. We can’t put a value to them now.

“The amount of money we have seized does not commensurate with their salaries,” said Azam without disclosing the identity of the two government officers.

“We are also calling in more individuals to help facilitate investigations,” he said, adding that the suspects and all those who had been called in so far gave their full cooperation.

MACC, he added, hoped that more people would come out and assist in its investigations as it would not hesitate to arrest them if they failed to cooperate.

Azam said MACC started its investigations about a year ago following reports from the public.

“We have been carrying out intelligence gathering and surveillance on the duo and their business associates.

“The suspects have allowed for the monopoly of projects and prevented other contractors from getting a fair share of business,” said Azam.

He said MACC believed their activity had been going on since 2010.

Azam said the two were suspected of giving out contracts to certain companies owned by their relatives, resulting in many other contractors not getting jobs for waterrelated projects involving some RM3.3bil from the Federal Government.

“There have been many complaints by other contractors that they were not able to get projects,” he said.

On the cash and other funds recovered, he said if the court found the money to be illgotten, it would be returned to the Government.

Earlier yesterday, magistrate Stephanie Sherron Abbie granted seven days’ remand for the four after an application was made by MACC investigating officer Mohd Faliq Basiruddin.

Azam said the MACC would apply to extend their remand if it was unable to complete its investigations within the week.

“We are still working out the money trail, and it will take some time as it is a complex investigation,” he said.

Hundreds of millions spent to improve Sabah’s water supply

KOTA KINABALU: The Federal Government is spending hundreds of millions of ringgit annually through special allocations to improve the water supply in Sabah.

These are mainly for the construction of water treatment plants, installation of new pipelines and replacement of ageing ones, according to officials.

In recent months, funding for 30 water treatment plants has been approved.

For the 2015 state budget, Chief Minister Datuk Seri Musa Aman had announced more than RM571mil for water supply improvement.

These included the construction of a water treatment plant and pipeline network installation in Beaufort at a cost of RM226mil.

The money was also for the construction of the Keningau Water Treatment Plant costing RM235mil and replacement of pipelines in Kota Kinabalu under the Reduction of NonRevenue Water (NRW) KK Phase IV programme costing RM38mil.

Last year, Deputy Chief Minister Tan Sri Joseph Pairin Kitingan announced that almost RM350mil was allocated to the Sabah Water Department to carry out several mega projects in the state.

These include the construction and refurbishment of water treatment plants in Beaufort, Kundasang, Semporna and Keningau.

Last February, Rural Development Minister Datuk Ismail Sabri Yaakob announced a RM48mil allocation for the construction of a water treatment plant at Moyog in Penampang.

Musa orders state govt to fully assist in probe

KOTA KINABALU: Chief Minister Datuk Seri Musa Aman has ordered the state government to give full assistance to the anticorruption investigators looking into suspected abuse of power, graft and money laundering involving projects.

“Let the authorities conduct their investigation without fear or favour,” he said in a statement.

Musa said the state government would also study the system and procedures on the tendering and awarding of projects in all departments to identify weaknesses or loopholes that provided opportunities for corruption and abuse of power.

He reminded civil servants to continuously uphold their integrity in discharging their duties.

Sources: The Star/Asia News Network

Sabah MACC probe: Cash total rises to RM114.5 million, five safety deposit boxes still unopened

KOTA KINABALU: More cash and items are expected to be confiscated as the Malaysian Anti-Corruption Commission (MACC) continues one of its largest corruption investigations involving four people, including two Sabah senior government officers.

MACC provided an update on the total amount of cash recovered from the senior officers and several bank accounts, including a company account, to RM114.5 million.

Five safety deposit boxes belonging to one of the senior officers are expected to be unlocked today.

MACC deputy chief commissioner (operations) Datuk Azam Baki said the unlocking of the boxes will have to be done with assistance from banks.

"Due to some regulations we have to comply with, we are not able to unlock the boxes immediately, but hopefully, we will be able to do so soon."

He also said that MACC officers will be sent to a neighbouring country where the suspects may have kept their money. MACC has also identified several individuals who may have links with the suspects who will be called up for their statement to be recorded.

By AVILA GERALDINE New Straits Times online

Two top Sabah Water Dept officers remanded over kickbacks from RM3.3bil project

 

The Sabah Water Dept director (right) and his deputy outside the Magistrate's court in Kota Kinabalu

KOTA KINABALU: Two senior officers of the Sabah Water Department and two others have been remanded to facilitate investigations into alleged kickbacks involving RM3.3bil worth of federal projects.

The 54-year-old director, his 51-year-old deputy and 55-year-old businessman brother, who is a Datuk, and his accountant, 50, were brought to the Magistrate’s court here on Wednesday.

Magistrate Stephanie Sherron Abbie allowed an application by Malaysian Anti-Corruption Commission investigating officer Mohd Faliq for the four people to be remanded for seven days.

On Tuesday, some RM3mil worth of cash were seized from the safe of one of the officers along with seven luxury vehicles belonging to them.

The MACC has frozen three bank accounts belonging to the director, the deputy and the Datuk in their investigations.

By Stephanie Lee and Muguntan Vanar The Star/Asia News Network

Related posts:

 PBA in a fix over Penang water cut; billion litres water waste via leaky pipies

Sep 21, 2016 ... PBA in a fix over Penang water cut; billion litres water waste via leaky pipes. Water letdown: Residents waiting for their pails to be filled by a ...

PBA in a fix over Penang water cut; billion litres water waste via leaky pipes

Critical time for DAP leader, Penang Chief Minister Lim Guan Eng

Fall from grace: Lim, who is facing two charges of corruption alongside businesswoman Phang (left), will continue as Chief Minister with the full support of his party. (Inset) The prosecution team is led by Attorney-General Tan Sri Mohamed Apandi Ali.

There has been widespread sympathy for Penang Chief Minister Lim Guan Eng but he is under pressure to walk the talk and take leave while he clears his name in court.

IT was almost 7pm but the sky was still bright when a convoy of cars emerged from the underground car park of Komtar, Penang.

The only hint that this was no ordinary caravan of vehicles was the flashing lights and siren from an accompanying police car.

The moment had finally come after weeks of speculation. Penang Chief Minister Lim Guan Eng had been arrested and was being escorted to the MACC headquarters to be charged in court the next morning.

It has been a spectacular fall from grace for the DAP leader who rose to power on an awesome wave of popular support and who is known as “Tokong” among the Penang people.

Lim has claimed trial to two charges, one of which pertains to using his position to benefit his wife Betty Chew and himself in the rezoning of a piece of land belonging to a private company known as Magnificent Emblem in 2014.

Another charge is related to his purchase of a bungalow from businesswoman Phang Li Koon a year later at below market value.

Phang, a mysterious figure until thrust into the media spotlight, was charged with abetment in the property transaction.

Gossip and speculation about the nature of the charges have been brewing among the cafe society but everything should be clearer when hearing begins towards the end of the year.

Lim is not the first political head of state to have waded into troubled waters.

Former Selangor mentri besar Dr Mohd Khir Toyo is now on parole after spending six months in jail for purchasing an under-valued “Balinese palace” from a company that had business links with the state government.

Another former Selangor mentri besar, Tan Sri Muhammad Muhammad Taib, also lost his job following the Australian Gold Coast affair that saw him charged with possessing undeclared foreign currency.

The late Datuk Seri Harun Idris was forced by Umno to resign in the 1970s after he was charged for corruption.

Lim is also not the first to resist taking a leave of absence after being charged in court.

Former Sabah chief minister Tan Sri Joseph Pairin Kitingan clung on after being charged for corruption. He was eventually found guilty but his penalty was not great enough to cost him his seat.

But Pairin’s time was old politics and this is supposed to be the era of new politics.

The DAP central executive committee has given Lim a ringing endorsement to stay on in his job on grounds that “there is no question of conflict of interest as Lim has no influence or control over the prosecution”.

It is only expected of DAP to stand by their top leader because if the top man falls, the party will become shaky.

But it also means that DAP is unable to walk the talk. The party is famous for asking others to step down over issues big and small but is unable to live up to the same principle when it involves one of their own. It will be hard for the party to judge others from now on.

It has put DAP figures like their Selangor chairman Tony Pua in an awkward situation. Shortly after the bungalow issue erupted, Pua had said there was no need for Lim to go on leave unless charges were brought against him.

He was quoted in a pro-Pakatan Harapan news portal as saying: “When charged, then (the person) should take time off.”

But legally speaking, the Chief Minister does not need to go on leave even with these kind of charges hanging over his head.

According to a Selangor judicial figure, forcing him out would be pre-judging him.

“He can still chair meetings, make decisions over land and development and sign documents. He can even go on with that tunnel thing.

“But having said that, a politician’s life is not only about legalities but also perception. He is representing a party that lectures others what to do. Can they still do that?” said the judicial figure.

Moreover, the Chief Minister’s focus, said the judicial figure, will now be divided between his case and running the state. There will be complications as the court case drags on.

Lim may not have influence or control over the prosecution but as the Chief Minister, he has control over the civil servants who may be called to testify in his case.

It will be awkward for potential witnesses who are his subordinates because not many people would be comfortable going to court to testify against their boss.

His presence would also bring uncertainty to the state and investors do not like uncertainty.

Still, it is his call and he has the full support of his party including that of party doyen Dr Chen Man Hin whose reputation is impeccable.

The charges against Lim are quite serious and it is only natural that he is doing what it takes to defend himself. Being Chief Minister will give him that much needed clout and back-up to face the complications ahead.

Besides, there is talk of new charges in the works related to the Taman Manggis land and also involving a company with links to “Miss Phang”, as she is known.

But there is also another side to the story why DAP is reluctant to have an acting Chief Minister take over from Lim.

Lim’s deputies are Deputy Chief Minister I Datuk Rashid Hasnon from PKR and Deputy Chief Minister II Dr P. Ramasamy from DAP.

Either one of them could act in Lim’s place if he goes on leave. But the sentiment in this Chinese-dominated party is that senior state executive council member Chow Kon Yeow should be the acting Chief Minister.

DAP would look terrible if Chow leap-frogs over the two deputies. It would only reinforce the perception that DAP is a Chinese chauvinist party.

However, if either Rashid or Dr Ramasamy takes over, the party’s right-wing Chinese base would be badly affected. Caught between the devil and the deep blue sea, DAP probably thought it would be better for Lim to remain at the top.

DAP leaders have slammed the charges as baseless and an attempt to topple a democratically elected leader. It is quite clear they intend to approach this as a political trial and to win over the court of public opinion.

A lot of Lim’s time will be spent convincing the public that he is innocent and a victim. Events like “Walk with Guan Eng” and “Session with the People” have been planned for today.

His supporters have tried to liken his dilemma to what Datuk Seri Anwar Ibrahim went through in 1998. It is not the best of comparisons given that Anwar was able to galvanise a whole generation of young Malays who flooded the streets in anger.

What DAP may have failed to take note of was that many Chinese intelligentsia have been wary of Lim’s leadership since the Mercedes-Benz episode. Lim had opted for a Mercedes S300L as his official car a mere three months after the state purchased a new fleet of Toyota Camry for the state leaders.

This was evident in comments by the Huazong chairman of Negri Sembilan, Lau Zhi Wen, who is as anti-Barisan Nasional as one gets and has often run down the 1MDB issue.

Lau’s comments in the wake of the court case have gone viral among the Chinese-speaking circle.

He recalled the early days when Lim flew economy class and provided hope for change and greater transparency. He said the people had longed for another Datuk Nik Abdul Aziz Nik Mat who was respected for his simple lifestyle.

But Lau said that Lim changed after winning by a bigger majority in 2013.

“Many said you grew arrogant, others still deify you. You changed cars, flew business class and bought a RM5mil bungalow for RM2.8mil,” he said.

Lau said he had high expectations of the Penang Chief Minister but would no longer speak up for him.

The Chinese vernacular press that would have once defended him to the hilt was also visibly neutral. The thing is Lim does not have as many friends in the Chinese media as when he started out as Chief Minister.

The Chinese vernacular media was instrumental in helping to propel DAP to power. They put Lim on a pedestal but now, eight years down the road, many of them have stories to tell about how they were treated by Lim and his staff and they are not pleasant stories.

The same goes for some of the lawyers watching the drama at the Penang courts on Thursday. A few years ago, they would have come out for him but on that day, their response was: “Let justice take its course.”

DAP is hopeful and confident that the court case will swing sympathy and support towards Lim and arrest the resurgence of support for Barisan.

They are painting their secretary-general as a victim of selective prosecution. Lim has also been trying to tug at the heartstrings with famous sayings that he would prefer to die standing than live on bended knees, and playing up his overnight detention at the MACC headquarters.

The court case proper has yet to start but the court of public opinion is already in session.



By Joceline Tan

Who's is who?

Judge: Judicial Commissioner Datuk Azmi Arifin

Accused: 1. Lim Guan Eng 2. Phang Li Koon

Prosecution:
1. Attorney-General Tan Sri Mohamed Apandi Ali 2. DPP Masri Mohd daud 3. DPP Mohd dusuki Mokhtar 4. DPP udiman lut Mohamed 5. DPP Mohd Ashrof Adrin Kamarul 6. DPP Mohd Zain Ibrahim 7. DPP Muhammad Fadzlan Mohd Noorbr

Lim Guan Eng’s counsel:
1. Gobind Singh Deo (lead) 2. Ramkarpal Singh 3. R.S.N Rayer 4. M. Kulasegaran 5. P. Subramaniam 6. M. Manoharanbr

Phang Li Koon’s counsel:
1. Datuk K. Kumaraendran (lead) 2. Dev Kumaraendran 3. Raj Shankar 4. Chetan Jethawanibr />