Contracts of 58 water plant concessionaires axed

KOTA KINABALU: The contracts of 58 outsourced water treatment plant concessionaires in Sabah will be terminated because of lopsided deals, said state Infrastructure Development Minister Datuk Peter Anthony.

Anthony said these concessionaires from six companies, who had made the contracts with the previous state government, had until Jan 15 to pack up.

“The state Water Department will absorb all the 1,335 employees but their terms of employment, including the duration of contract, will be discussed and reviewed,” he said.

Anthony, whose ministry oversees the department, said other legal aspects would be handled by the Attorney-General.

This termination, he said, was expected to help the state government save at least RM1bil for the next 10 years from contract fees.

The state Water Department had earlier announced that it was going after these concessionaires hired to manage water treatment plants and dams as the payment was high for the services rendered.

These concessionaires were paid about RM3.7bil to oversee and manage 58 water treatment plants and dams for 20 years but the contractors were still allowed to claim for work costing RM5,000 and above.

“So, despite being paid such a huge sum, the money was not used for the management (of the water treatment plants) as they still claimed payments for whatever works they do (unless it costs RM5,000 or less),” Anthony had said.

He said the department would also go after water thieves, who had contributed to the shortage in supply and dishonest business deals.