Parti Warisan Sabah vice-president Junz Wong demanded a public inquiry in light of recent findings on alleged financial irregularities in the companies’ accounts.
In a statement today, he gave a breakdown of the 2013 financial reports of Yuda Water, one of the companies involved.
He said Yuda’s contract with the Sabah Water Department showed the contract sum was for RM23,476,375.
Consultant fees, which came under direct expenses, was RM780,000 (RM65,000 per month). Yuda also paid consultant fees of RM760,000 from 2012-2014, and RM960,000 for 2015.
Wong, who is also Likas assemblyman, asked what work the consultant was required to do, and whether there was any contract between the company and the consultant.
“Why is there a necessity to engage in consultation work even after the treatment plants have been running for a few years?”
Other questions arose in connection with the sub-contract fees, which were listed at RM11,942,000.
Wong said checks showed that Yuda had paid sub-contract fees of RM12.5 million in 2012, RM11.9 million in 2013, RM11.7 million in 2014 and RM10.4 million in 2015.
However, further breakdowns of the company’s finances showed RM234,115 budgeted for repairs and maintenance and RM812,194 for the upkeep of the water treatment plant.
“It doesn’t seem realistic to me as the company seems to be doing the maintenance work,” he said.
The opening stock of RM395,627 and closing stock of RM433,223 further proved that Yuda was physically undertaking the maintenance work, he said.
Wong also asked why the hiring expense of RM329,000 was classified under administrative and general expenses instead of direct cost, saying it was “questionable”.
Also under administrative and general expenses was the directors’ remuneration of RM1,561,000 (average) and dividends of RM600,000.
Total remuneration taken by directors and shareholders was RM2,161,000, he said.
“The fact that such a huge amount of public money is being paid to these companies for 20 years just to treat and supply water means these companies have public and social obligations to answer to the Sabahans, because ultimately it’s the people of Sabah who are paying for these bills,” he said.
This is not the first time Wong has spoken out against the companies.
On March 1, he lodged a report with the Malaysian Anti-Corruption Commission (MACC) demanding a full investigation into the companies carrying out projects for six water concessionaires in Sabah.
He claimed these companies had secured contracts worth RM122 million every year for 20 years, which added up to RM2.44 billion.