AT least two Sabah water concessionaires have taken legal action against the Sabah Water Department over the termination of their contracts last month.

Several other concessionaires are also expected to follow suit over the termination of their respective long-term contracts.

On January 15 this year, the department had terminated 20-year contracts granted to six companies to maintain 58 treatment plants across Sabah. The contracts were awarded by the previous government in 2013.

The 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.

The companies which have filed the suit is Arawira Sdn Bhd and another unnamed company.

In Arawira’s writ of summon, the company named the Sabah Water Department director and the state government as the first and second defendants.

Sources from the water department confirmed that they have received the summons on February 7 but are awaiting for the minister in charge to make the proper announcements.

The minister concerned is Sabah Infrastructure Development Minister Peter Anthony.

The sources confirmed they have so far received two summons, including the one from Arawira.

He refused to name the second summon.

“I did not go through the writ in detail, but I was advised to forward it to the state Attorney-General’s Office,” the source explained.

Last year, Sabah Water Department, under Anthony’s orders, had studied the contracts and found that they were lopsided.

Anthony said the contracts cost the government RM15.5 million a month and their termination could help the state government save up to RM10 million a month.

The minister also said the termination was part of the department’s revamp after being embroiled in a money-laundering scandal worth hundreds of million of ringgit. – February 10, 2019.