Sabah to review 'biased' agreements with water contractor companies

SUZIANAH JIFFAR

KOTA KINABALU: Sabah state government is looking into reviewing its agreements with six water contractor companies, including the possibility of terminating some of them if necessary.

State Infrastructure Development Minister Datuk Peter Anthony said the six companies were involved in managing 58 water plants throughout the state.

“We view the agreements made are biased and only benefit (the contractors).

“After taking over the ministry, I find there is a flaw in the appointment of contractors' job liability to be only RM5,000 (based on the frequency of the problem), while the state pays them RM3.7 billion for a period of 20 years or about RM186 million a year.

“The liability means if there is maintenance work or damaged equipment such as pump that cost up to RM200,000, all these will be borne by the government and not the contractor involved,” he said in a press conference here, today.

In view of that, Peter called on the agreement to be reviewed, adding that he believed the new Sabah Water Department director Amarjit Singh would look into measures to reduce the financial wastage of nearly RM1 billion for 20 years.

In another development, Peter said that the hot weather, expected to continue until December, has affected the water supply at Pulau Banggi, Pitas, Beaufort, Kuala Penyu, and Menumbok. “We hope villagers in the affected areas to save water and use them only when necessary. We have also made preparations including providing water tanks to villages in badly-affected areas.” said.


State Infrastructure Development Minister Datuk Peter Anthony said the six companies were involved in managing 58 water plants throughout the state. (NSTP/EDMUND SAMUNTING)

© New Straits Times Press (M) Bhd