THE 20-year concessions to maintain 58 water treatment plants in Sabah, at a cost of RM15.5 million a month, have been terminated in view of the state financial problems.

Sabah Infrastructure Development Minister Peter Anthony said the decision was made by the state cabinet after reviewing all deals done by the previous Barisan Nasional government in the last three months of its term.

He said the companies have until January 15 until their contracts are terminated.

This is part of the revamp of the Sabah Water Department that was once embroiled in a money-laundering scandal worth hundreds of million of Ringgit.

“Their contracts will cease on January 15 next year and the six companies have until that time to return all equipment belonging to the Water Department.

“With the termination, the state government has taken over the maintenance of all 58  treatment plants,” he said at a press conference in his office in Kota Kinabalu, today.

It is understood the contracts were awarded in 2013.

The six companies are Arawira Sdn Bhd, Yuda Water Sdn Bhd, AKal Kukuh Sdn Bhd, Sahabat Megajuta Sdn Bhd, Harmony Water Sdn Bhd and BYT Vision Sdn Bhd.

Anthony said the state government will review the 1,335 employees of these firms and re-hire them in stages, but made no guarantee that all of them would be absorbed.

The termination of the contract could reduce the state government’s maintenance bill to RM10 million a month.

This is on top of the 11 treatment plants presently under the Sabah Water Department.

“With the termination of the contracts, the ministry could help the Sabah government save more than RM1 billion in the remaining part of the contracts.”

He said the state attorney-general is also looking at the contracts to determine whether the department needs to compensate the six firms.

On another development, Anthony warned of possible water shortages in several districts due the El Nino phenomenon.

He said Water Department offices in Tenom, Keningau and Beaufort have been notified and will take actions if there is a water shortage.

Anthony said reservoirs that can keep up to three months’ supply of water will be built in the districts next year. – December 21, 2018.