THE new bosses at the Malaysian Anti-Corruption Commission (MACC) must be applauded for the arrests of several people behind the “massive leakages” of public funds disbursed for Sabah water projects.
The biggest-ever anti-corruption case in MACC’s history — with RM115 million recovered from the Sabah Water Department’s (JAS) top two officials, including RM53.7 million in cash — has stunned the nation and raised many pressing questions.
Four arrested individuals have been remanded for a week to facilitate investigations into kickbacks involving RM3.3 billion worth of Federal Government-funded water projects in Sabah.
The RM3.3 billion water projects were directly under the purview of the Rural and Regional Development Ministry, and part of the Rural Development National Key Result Area under the Government Transformation Programme 2.0 (see table).
Although the Sabah government had asked that the ministry’s funds be channelled through the state Treasury, the request was never approved.
The rural and regional development minister at the time was Datuk Seri Mohd Shafie Apdal, a senior Sabah Umno leader who did not see eye to eye with Chief Minister Datuk Seri Musa Aman.
Shafie held the post for six years until his removal as cabinet minister in July last year after a falling out with Prime Minister Datuk Seri Najib Razak. Shafie has since left Umno.
The Sabah water projects were implemented by Shafie’s ministry, apparently with very minimal participation by JAS.
JAS’s role was merely to prepare, through a limited tender process, 10 local companies to carry out the projects, according to one portal. These companies were allegedly controlled by the JAS director and his deputy.
Shafie issued a statement yesterday, saying he was more than willing to cooperate with MACC in its investigations if there was a request.
The Sabah graft case could well be the tip of the iceberg, and MACC must continue to carry out its work without fear or favour.
But, it also leads to many questions. How could a case of this scale go undetected for over six years? Why were no red flags raised within the procurement system, both in Putrajaya and Kota Kinabalu?
Were there periodic internal and external audits? Were the necessary mechanisms of checks and balances adhered to? Which authority regulates JAS? Who sits on the department’s tender board?
The then Sabah state speaker, Datuk Seri Salleh Said Keruak, had, in July 2013, raised his concerns, saying federal funding for water and rural development projects in the state had not been used effectively and lacked transparency.
“Although most of the projects have been implemented, some of them do not reach the target or meet the needs of the people, or do not meet the planning and priorities aspired by state leaders, especially elected representatives,” he had said.
There are still many places, such as Pulau Banggi on the northern tip of the state, that have no regular or stable treated water supply, 53 years after the formation of Malaysia.
I am sure Sabahans must find it disgusting to learn that some RM117 million meant for state waterworks was found stashed in the homes and offices of the two officers, and in private bank accounts.