RM114m seized in Sabah 'watergate' case remains under MACC custody

LocalPolitics
9 Jul 2026 • 4:43 PM MYT
Daily Express
Daily Express

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RM114m seized in Sabah 'watergate' case remains under MACC custody

Kuala Lumpur: The Federal Government has confirmed that all cash and assets seized in 2016 in connection with the corruption and abuse of power case involving the former Sabah Water Department director remain under the safe custody of the Malaysian Anti-Corruption Commission (MACC) pending the conclusion of court proceedings.

The matter was raised in the Dewan Rakyat by Tuaran MP Datuk Seri Madius Tangau, who sought an update on the RM114 million seized by the MACC and the government's plans to return the funds to the Sabah Government as they were originally allocated for water supply upgrading projects in the State.

Responding, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said all seized cash and assets remain in the MACC's custody in accordance with the enforcement agency's standard operating procedures.

She said seized assets remain under the custody of the relevant enforcement agency until all court processes have been concluded and a final decision has been made.

Azalina said the assets could only be forfeited and transferred to the Malaysian Treasury after a forfeiture order had been obtained from the court.

She also disclosed that the prosecution had previously applied to the Sessions Court for all the seized cash and assets to be forfeited to the Malaysian Government, but the court ordered the application to be temporarily deferred.

She said the prosecution has since filed an appeal to the High Court against the Sessions Court's decision and that the matter remains subject to ongoing legal proceedings.

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