KOTA KINABALU (Feb 22): The State Water Department corruption trial on Wednesday heard that two former ministers had received money contributed to a scheme by contractors friendly to the department.
A former deputy director of the state Water Department also told the Special Court for Corruption that the appointment of contractors to do maintenance work projects worth not more than RM150,000 were planned and arranged.
Teo Chee Kong testified that these F Class contractors were appointed through “so-called open tender” or quotation which meant that it had already been planned and arranged which contractors would get which projects.
The star witness for the prosecution was testifying in the trial of former director of the department, Ag Mohd Tahir Mohd Talib, his wife Fauziah Hj Piut and former deputy director Lim Lam Beng @ Lim Chee Hong before judge Abu Bakar Manat.
Under examination-in-chief by deputy public prosecutor Mahadi Abdul Jumaat for additional questions, the 57-year-old Teo who is the prosecution’s 29th witness, testified that the projects did not need approval of the tender board as it was done by the Water Department’s quotation committee.
To another question, Teo said that these contractors were friendly to the state Water Department.
Teo explained that these friendly contractors could follow a scheme from the department where they would give contribution money and they also have good work performances.
The witness said that he had the written name lists of these contractors but only for Kota Kinabalu division.
To another question, Teo said that the department knew who were the friendly contractors because they could be brought for negotiation regarding the said scheme.
“These contractors will be given projects and good hospitality from us. The projects for this scheme were allocated from the State Finance Ministry.”
To another question, Teo testified that the money contribution scheme for the superior had already been around for 10 years since he started working with the department in 1989.
Describing the scheme as a culture at the department, Teo explained that if he refused to follow the culture, it would be difficult to get allocation for maintenance works from the superior.
“This will also make daily works difficult and immediate pipes repair also could not be carried out,” he explained,
Teo testified that only in April 2005, he came out with a headquarters list which listed the contribution money from districts and to whom the money would be given to.
To another question, Teo testified that after meeting contractors, they had agreed to contribute 10.75 percent from the quotation to the scheme because the percentage was a schedule rate approved by the department.
Teo explained that this schedule rate was approved during a meeting on April 7, 2005 and a resolution for this schedule rate had been made.
He further explained that from 2005 to 2016, three schedule rates were provided for the scheme in 2005, 2008 and 2014 and these rates were allegedly approved by Ag Mohd Tahir.
“There were three rates because there were price hikes for goods and construction materials in 2008 and 2014. For win-win situation, we had also increased the price.
“These rates were provided by me with my officers,” said the witness.
To another question, Teo said that throughout 2005 to 2016, there was no problem on the 10.75 percent contribution collection for the scheme.
However, there was an early discussion allegedly between the deputy director at that time Lim and Teo, which was allegedly instructed by the director at that time to have a centralized scheme collection.
To another question, Teo testified that apart from the alleged discussion with Lim, Lim’s alleged role was also to bring Teo to meet ministers and officers to tell about the scheme and to give them the contribution money.
Teo said that the Water Department was under a ministry and the ministry received 1.5 percent contribution money from the scheme allegedly instructed by Ag Mohd Tahir.
“Before 2005 which was before this scheme existed, there was less allocation from the ministry compared to after the scheme existed.
“After the scheme existed, more allocations for maintenance projects, quotations and for emergency,” he said.
Teo testified that as far as he could recall, two former ministers had received the contribution money from 2005 to end of 2009.
Teo further said that the scheme was also given to officers from another ministry and he said that with these two ministries being the alleged scheme recipients, the Water Department would be getting more allocations.
Under examination-in-chief by deputy public prosecutor Haresh Prakash Somiah for further additional questions, Teo said that there were around six to eight friendly contractors in Kota Kinabalu.
Ag Mohd Tahir, 59, Ag Mohd Tahir’s wife Fauziah, 57, and Lim, 68, were tried for alleged money laundering offences involving cash and huge amount of bank savings as well as unlawful possession of luxury goods.
Ag Mohd Tahir faces 11 charges and Fauziah faces 19 charges under Section 4 (1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUA) 2001.
Apart from that Fauziah has another two joint charges with Ag Mohd Tahir under Section 4 (1)(b) also of the same Act and Ag Tahir also has another charge under Section 4(1)(a) of the same Act.
The alleged offences against Ag Mohd Tahir and Fauziah were committed at his office here, a house in Sembulan, at bank branches, at a condominium, in Sulaman and a tower in Kuala Lumpur between October 4 and November 4, 2016.
Lim was alleged to have committed the offences at the Malaysian Anti-Corruption Commission office at Jalan UMS and at a house here between October 13 and November 8, 2016.
Apart from Mahadi and Haresh, deputy public prosecutor Zander Lim also handled the trial.
Counsel Priskila Akwila Sinem and Mohammed Fareez Mohammed Salleh represented Ag Mohd Tahir and Fauziah.
Counsel Datuk Tan Hock Chuan, who followed the trial via Zoom, Baldev Singh, Karpaljit Singh and Calvin Wong defended Lim.
Counsel Ram Singh held a watching brief for Teo.
The trial continues today.