The Sabah State Water Department corruption probe (Malay: Siasatan Rasuah Jabatan Air Negeri Sabah) refers to a 2015 to 2016 widespread investigation by the Malaysian Anti-Corruption Commission (MACC) over the alleged abuse of power inside the Sabah State Water Department resulting in the arrest of two senior officers in the state agency along with the confiscation of RM3 million which had been kept inside a safe deposit box in the office of one of the suspects, together with a total of RM52 million cash were seized from various more places, including from the officials' house which also includes gold and stone jewellery, luxury brand watches, 94 branded handbags, nine luxury cars and folders containing 127 land grants of the two officers. Another businessman with the title of "Datuk" (one of the officials brother) and his accountant were also arrested in connection with the case. During the confiscation of the RM52 million, the MACC members of 30 people took 15 hours to go through, using the serial numbers to estimate some of the sealed stacks.
The total confiscation then increase to RM53.7 million, RM112 million and finally to RM114.5 million, with the case been considered as the largest ever confiscation by MACC in the country corruption history. Until 12 October 2016, the four people remain arrested, with another five people been called to help facilitate the investigation following the record statements from 40 people, including department officers and contractors. Three of the witnesses surrender a total of RM1 million to MACC after giving their statements on the probe. Further investigation revealed another RM30 million in foreign banks with money trail leading to Australia and New Zealand and another RM30 million in land titles. For over 5 years, both of the two main suspects had taken 60% of state funds channelled by the federal government that supposedly been used for water supply works.
Background
Responding to complaints over the unfair distribution of water development project contracts in the department, the MACC spent over a year investigating the two suspects who appeared to be living in upper-middle-class lives. According to the investigations by 70 MACC personnel since 2015, both suspects are linked to 38 different companies since 2010, with the department director is linked to 17 companies owned by his siblings and proxies, while his deputy is connected to 21 companies owned by his family members. Almost every water development projects in the state were awarded to both suspects linked companies. The department were also seen as did not auditing its infrastructure projects since 2002. A check by local newspaper, New Straits Times on the auditor general (AG) reports from 2002 until 2015 found that the department had only been audited seven times, with the records only focusing on its non-revenue water (NRW) management and privatisation of supply.
Based on the 2015 statistics from the National Water Services Commission (Malay: Suruhanjaya Perkhidmatan Air Negara (SPAN)), 87.9% of Sabah residents received a treated water supply compared to the state of Kelantan with only 64% as many Kelantan residents mostly depends on alternative water resources. The Sabah State Water Department are mostly poor in the handling of NRW due to theft, leakage, burst pipes, faulty meters and maintenance works, with Sabah's rate was 55.1%, the second bottom from Perlis with 56.3%.
Probe
Following a series of investigation for years, a team of MACC then raid the office of Sabah State Water Department on 4 October 2016, arresting the department's director Awang Tahir Awang Talib (aged 54) and his assistant Teo Chee Kong (52) on the spot along with the confiscation of RM114 million worth of assets and RM53.7 million in "cold cash", with further investigation revealed a money trail leading to Singapore, Australia and New Zealand. The shocking revelation led the MACC deputy chief commissioner saying: