Thu, 11 Jun 2026
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‘Millions paid in commissions over 10 years’
Published on: Saturday, February 25, 2023
Published on: Sat, Feb 25, 2023
By: Jo Ann Mool
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‘Millions paid in commissions over 10 years’
On trial were former State Water director Ag Mohd Tahir Ag Mohd Talib, 58, his wife Fauziah Piut, 55, who were jointly charged with former State Water Deputy Director Lim Lam Beng, 66, on 37 counts of money laundering charges, involving cash and bank savings amounting to RM61.57 million, as well as unlawful possession of luxury goods. - (Pix by Devonshires)
Kota Kinabalu: A former division water engineer told the Sessions Court here Friday that he had submitted between RM1 million and RM3.5 million in commission annually for 10 years since 2006 to former Sabah Water Department Deputy Director Teo Chee Kong under the centralised collection system.Tam Yin Foon, who was Kota Belud division water engineer from 2002 to 2007 and later Keningau division since 2007, told Judge Abu Bakar Manat this in his testimony as the prosecution’s 33rd witness in the trial of two former officials of the Sabah Water Department and one of their wives, who were charged with money laundering.

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Tam confirmed he was involved in accepting commissions from contractors to be channelled to the chairman of the divisional water engineers at that time, Teo Chee Kong.

Tam said he was involved because he followed the instructions and plans set by his superiors, namely the Director and Deputy Director of the State Water Department.

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“If I do not follow the instructions and plans that have been set, it will make it difficult for me to carry out my duties as the water engineer of the Keningau division, which is likely to make it impossible for me to get the allocation to develop water infrastructure in the division. Apart from that, if I do not follow what has been instructed, it will make it difficult for me to ensure the continuous supply of water in Keningau division since my department does not have sufficient allocations to repair and replace broken or worn water pipes,” said Tam.

Tam, currently a Senior Assistant Director of a branch at the State Drainage and Irrigation Department since March 2021, said as water engineer of Keningau and Kota Belud division, he was reporting and under the State Water Department Director Ag Mohd Tahir Mohd Talib and Deputy Director Teo Chee Kong.

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Before Teo Chee Kong took over the position, it was held by Lim Lam Beng, said Tam.

Tam confirmed receiving a meeting invitation letter for the divisional/district water engineers dated March 29, 2005 which was issued and signed by the State Water Director Ag Mohd Tahir, which took place on April 6, 2005 at the Water Department Division, Gaya Park, Kota Kinabalu, and on April 7 the same year at the Water Department Headquarters, Kota Kinabalu.

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The witness confirmed that he had attended the division/district water engineers meeting on April 6, 2005, chaired by Teo and also attended the next meeting on April 7 chaired by the State Water Director.

Tam said after the official agenda of the meeting was completed, an informal discussion was held between Teo and the divisional and district engineers, where Teo informed all engineers regarding Teo's discussion with the Water Department Deputy Director Lim Lam Beng regarding the agreement and instructions of the Water Department Director Ag Mohd Tahir that each divisional and district engineer requests a contribution or commission from the contractor amounting to 27.5 per cent of the value of each project carried out in the respective division or district.

Tam said Teo further informed that of the 27.5 per cent percentage, 10.75 per cent of which should be handed over to him for the purpose of being channelled or distributed to the Water Department Director and Deputy Director as well as officers at Water Department Headquarters, the State Infrastructure Development Ministry (KPI) and the State Finance Ministry (MoF).

Tam confirmed that Teo also informed them that the remaining contribution or commission amounting to 16.75 per cent is to be distributed and used in the respective divisions or districts.

"The other divisional/district engineers and I were then handed over a copy of the contribution distribution table or commission amounting to 10.75 per cent that Teo had received from the divisional and district Water engineers throughout Sabah,” said the witness.

Tam said he could not remember the parties who received a fraction of the 10.75 per cent contribution or commission and only remembered that the said contribution money would be distributed to the State Water Director, Deputy Director, head of finance, several officers at Water Department headquarters, KPI and MoF.

Tam added that he remembered that of the 10.75 per cent, 2.4 per cent of it would be channelled to the State Water Director while 1.5 per cent was for the Deputy Director.

Tam further testified that they were also told that asking for a contribution or commission amounting to 27.5 per cent would not cause any loss to the contractor because Teo had issued a price table guide for the works carried out by the contractor where the rate in the table had been raised higher than the market rate.

This increase was made to ensure that a contribution or commission amounting to 27.5 per cent of the value of a work could be given to divisional/district engineers, with the contractor benefiting from the work that had been carried out.

Tam also verified that all engineers including himself agreed with the instructions to request or obtain a contribution/commission of 27.5 per cent from the contractor, with 10.75 per cent of it handed over to Teo for further distribution as contained in the schedule.

Tam said they also agreed that the handover of money to Teo was by cash and that the said meeting was not minuted as it was unofficial.

"We were informed that the contribution/commission of 10.75 per cent was in return to the Water Department headquarters, especially the Director for approving an allocation warrant to the division/district office for the purpose of spending on water infrastructure development projects in the respective division or district.

"We were also informed that if the contribution or commission amounting to 10.75 per cent is not channelled to him, the allocation warrant for the implementation of water infrastructure development projects (quotation projects and emergency works) would not be approved or late approved to the division or respective districts.

"This will cause all the planning of water development projects in the respective areas to be unable to be carried out smoothly and will further increase dissatisfaction among users towards the level of service provided by the Water Department in their respective divisions and districts.

"Apart from that, if the order to give this contribution is not obeyed, it can be said to be disobeying the order which may affect the relationship between the two parties and further complicate the course of official affairs between the Headquarters (director) and the divisional and district water office.

Tam said the money he received from the contractor was mostly kept at his house and that he would first collect the money of 10.75 per cent commission until it reached a certain amount - an average of RM200,000 to RM300,000 - before he handed it over to Teo.

On trial were former State Water director Ag Mohd Tahir Ag Mohd Talib, 58, his wife Fauziah Piut, 55, who were jointly charged with former State Water Deputy Director Lim Lam Beng, 66, on 37 counts of money laundering charges, involving cash and bank savings amounting to RM61.57 million, as well as unlawful possession of luxury goods.

They had on Dec 29, 2016 pleaded not guilty to the charges. Deputy Public Prosecutors Mahadi Abdul Jumaat, Haresh Prakash Somiah and Zander Lim appeared for the prosecution.

Ag Mohd Tahir and Fauziah were represented by counsel Priskila Akwila Sinem and Mohamed Fareeez Mohamed Salleh while Lim was represented by counsel Datuk Tan Hock Chuan, Baldev Singh and Karpaljit Singh. The trial will be continued on March 8-10.
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