Cash and assets worth RM114 million seized during the Malaysian Anti-Corruption Commission’s (MACC) investigation into the former director of the Sabah Water Department in 2016 remain under the agency’s custody while court proceedings continue.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said seized assets are typically held by the enforcement agency until all legal proceedings, including appeals, have been fully concluded.
She explained that the money and assets can only be forfeited and transferred to Malaysia’s Treasury after the court grants a forfeiture order.
In a written parliamentary reply, Azalina said prosecutors had applied at the Sessions Court for all seized cash and assets to be forfeited to the government. However, the court ruled that the application should be postponed until all appeals at the higher courts have been completed.
“The prosecution has since filed an appeal to the High Court against the Sessions Court’s decision, and the matter remains subject to ongoing legal proceedings,” she said.
Azalina was responding to a question from Datuk Seri Madius Tangau (GRS–Tuaran), who sought clarification on the status of the RM114 million seized by the MACC and asked what steps were being taken to return the funds to the Sabah government, as the money was originally intended for upgrading the state’s water supply infrastructure.
The high-profile corruption case began on 4 October 2016 when the MACC arrested the then 54-year-old Sabah Water Department director and his 51-year-old deputy over allegations of abuse of power and corruption. Investigators also detained a 50-year-old accountant and a 55-year-old man bearing the title “Datuk”, who is the elder brother of the former deputy director.
The former director and his deputy were accused of abusing their positions by monopolising and awarding water infrastructure projects worth RM3.3 billion to their relatives since 2010.
Following the arrests, the MACC seized RM52.2 million in cash, including RM45 million from the former director and RM7.2 million from his deputy. The cash was discovered hidden inside their homes, offices and vehicles.
Investigators also confiscated and froze additional assets, including nine luxury vehicles, 127 land titles, 98 luxury handbags, 14 kilograms of jewellery, numerous luxury watches and RM62 million held in bank accounts.
The total value of assets seized, including cash and funds in overseas accounts, was estimated at more than RM180 million, making it the largest seizure in the MACC’s history since the agency was formerly known as the Anti-Corruption Agency (ACA).
A total of 28 individuals were arrested under Ops Water Phases One and Two, including the retired former deputy director, 23 engineers and technicians, as well as two civilians linked to the investigation.
