Minister Peter Anthony said the measures included a review of the operations and maintenance contracts of 58 water treatment plants in the state, following the discovery of “lopsided” agreements signed by the previous state government with six companies for a 20-year concession period valued at RM3.7 billion.

He said all six companies were making a profit without having to fork out their own capital except for RM5,000 in maintenance costs. Other expenses for maintenance work was borne by the government even though each company was paid RM186 million a year, he added.

“How did the previous government appoint these companies that were not required to fork out their own capital except maintenance costs of RM5,000 while the water treatment plants’ equipment or damaged pumps can cost between RM200,000 and RM1.2 million?

“This matter has been reported to the Malaysian Anti-Corruption Commission to enable an investigation to be carried out,” he said at a press conference here yesterday.

Peter said his ministry would also identify the next course of action including from the legal aspect to immediately terminate the contracts if necessary.

“We hope in the next six to 12 months there will be a big change in the department that will benefit the people and the state of Sabah.”