Kota Kinabalu: Former Sabah Water Department Director Ag Mohd Tahir Mohd Talib was jailed a total of 96 years and fined RM284.3 million, in default 78 months’ imprisonment, after the Special Corruption Court here on Tuesday found him guilty on 12 money-laundering charges.
However, Ag Mohd Tahir would serve eight years after allowance for public holidays and weekends as the sentences would run concurrently.
Sessions Court Judge Abu Bakar Manat ordered Ag Mohd Tahir, 63, to serve eight years’ jail on each charge and ordered the prison terms to run concurrently from the date of conviction.
The court also imposed fines ranging from RM5 million to RM120 million on the respective charges.
Spanning 10 years since 2016, it was the nation’s longest such trial. The millions of ringgit allegedly siphoned off through an elaborate scheme was blamed as the possible reason for Sabah’s legacy water shortage problem with the public complaining of dry taps during Hari Raya and other festivities, the poor forced to buy bottled water to survive and lack of water to wash corpses before burials in worst case scenarios.
Ag Mohd Tahir on the first count, was jailed eight years and fined RM120 million or 12 months for having RM23,695,050.00 in cash, SGD282.00 and THB46,200 kept at the Sabah Water Department office at Wisma Muis here on Oct 4, 2016.
Advertisement
On the second charge, he was jailed eight years and fined RM50 million or six months for having RM8.56 million in cash as well as cash of 13 foreign currencies notes at a townhouse in Graceville, Sembulan.
On the third count, he was handed eight years and 46 million or six months jail for having RM9.19 million found inside a Mazda 6 vehicle bearing registration number SAA66R.
On the fourth to nine counts, he was jailed eight years and fined RM5 millions or six months jail on each charge for having RM698,064.34 kept in an OCBC Bank account; RM139,612.868 in a UOB Bank account; a Volvo XC60 vehicle and an Audi 1.4 TFSI;Mazda 6 2.5 SDN,BMW 535i Sedan, Ford Ranger 3.2L 4WD and Mercedes Benz C300; 86 luxury watches of various brands; and was directly involved in a RM14,000 cash transaction handed to one Cristine Fiona M. Ponsoi, which was proceeds from unlawful activities, under Section 4(1)(b) of the AMLATFPUAA 2001.
Ag Mohd Tahir on the 10th count was jailed eight years and fined RM21 millions or six months for having RM4,130,400.00 cash in a Mercedes Benz C300, and was also handed eight years plus RM10 million or six months jail on the 11th count of having RM1,920,283.22 in an OCBC Bank account.
On the 12th count, he was handed eight years jail and fined RM7.3 millions or six months jail for having RM1,449,489.32 in UOB Bank account.
The judge meted out the sentence after taking into consideration the mitigating factors submitted by the defence as well as aggravating factors highlighted by the prosecution.
However, the court allowed a stay of execution of both the jail and fine pending appeal to the High Court, with the original bail amount and conditions maintained.
Meanwhile, Ag Mohd Tahir’s wife, Fauziah Piut, 61, was discharged and acquitted of all 19 money-laundering charges against her involving luxury handbags and monies allegedly derived from unlawful activities, including 93 branded handbags and funds kept in several bank accounts between Oct 4 and Nov 4, 2016.
The court also ruled that the prosecution failed to prove the element of common intention in the two jointly charged counts against Ag Mohd Tahir and Fauziah under Section 34 of the Penal Code.
Fauziah was discharged and acquitted of two joint charges with her husband, while Ag Mohd Tahir was acquitted of the two joint charges.
In the two said charges, Ag Mohd Tahir and Fauziah were accused of jointly having 575 pieces of gold jewellery and 128 jewellery items at a house in Graceville Sembulan on Oct 4, 2016, both charges were framed under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, read together with Section 34 of the Penal Code.
The offence against the duo allegedly committed at various locations, including an office in Kota Kinabalu, a house in Sembulan, at Puncak Luyang Condominium here and several bank branches between Oct 4 and Nov 4, 2016.
Former Sabah Water Department deputy director Lim Lam Beng, 72, was also discharged and acquitted of all four charges against him under Section 4(1)(b) of the same Act for allegedly having a Toyota Land Cruiser, RM200,000, RM1.9 million and RM280,000 believed to be proceeds from unlawful activities allegedly committed on Oct 13, Oct 22, Nov 7 and Nov 8, 2016.
In delivering the ruling at the end of the defence case, Abu Bakar held that the prosecution had successfully proven its case beyond reasonable doubt against Ag Mohd Tahir for all 12 charges under Section 4(1)(a) and Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001).
The judge said the prosecution had established that Ag Mohd Tahir abused his position as Director of the Sabah Water Department and committed a predicate offence under Section 23 of the Malaysian Anti-Corruption Commission (MACC) Act, although the offence itself was not directly charged in court.
Abu Bakar said the prosecution had proven that Ag Mohd Tahir was involved in unlawful activities through a “centralised collection scheme” between 2005 and 2016.
The court said that MACC raids uncovered RM45,549,586 in cash at Ag Mohd Tahir’s office at Wisma Muis, his residence and vehicles.
The seizures comprised RM23.69 million found at his office, RM3.56 million at his residence, RM9.19 million inside a Mazda 6 and RM4.13 million inside a Mercedes Benz C300.
The court also said that various foreign currencies, jewellery, luxury watches and branded handbags were seized during the raids.
Abu Bakar said the prosecution had called 46 witnesses and tendered 1,378 exhibits during the trial, while the defence submitted 106 exhibits.
The judge said Ag Mohd Tahir failed to raise reasonable doubt against the prosecution’s case.
He said the defence also failed to provide any reasonable explanation or documentary proof to support claims that the monies and assets were derived from legitimate business activities.
Although Ag Mohd Tahir claimed the monies came from commissions and business profits involving several individuals, including businessman Datuk Teo Chit Ming, the court found that no supporting documents, bank statements, project details or business records were produced.
“The evidence against the first accused is too overwhelming and he failed to explain reasonably where all the monies came from and their source,” the judge said.
Abu Bakar described Ag Mohd Tahir’s defence as an “afterthought” raised only after MACC raids were carried out at his office, residence and vehicles.
The judge also noted that 15 witnesses had testified for Ag Mohd Tahir’s defence including several high-profile witnesses, among them, former chief minister Tan Sri Joseph Pairin Kitingan, former State Infrastructure Development Minister Datuk Seri Raymond Tan, former permanent secretary Datuk Felik Madan and Datuk Peter Thien.
On Fauziah, Abu Bakar ruled that the prosecution failed to prove beyond reasonable doubt that she had knowledge, intention or involvement in the alleged unlawful activities and also held that it was unsafe to convict her on the charge under Section 4(1)(b) of the AMLATFPUAA 2001.
He said Fauziah was charged largely due to her status as the wife of the first accused and there was “no iota of evidence” linking her to project awards, unlawful transactions or the alleged centralised collection scheme.
The judge said the prosecution also failed to establish the element of common intention under Section 34 of the Penal Code in the two jointly charged counts against the couple.
“For common intention to apply, the prosecution must prove both accused shared knowledge and intention in committing the offence, but such evidence was absent against the second accused,” he said.
Abu Bakar further held that the prosecution failed to prove the required mental element, or mens rea, against Fauziah, On Lim, Abu Bakar ruled that the prosecution failed to prove beyond reasonable doubt that the cash sums and vehicle linked to him were proceeds of unlawful activity.
The judge said evidence showed Lim had handed over the monies to the MACC upon instructions from investigating officers and that no cash or incriminating items were found in his possession during raids.
He said Lim’s defence was supported by documentary evidence, including records relating to the sale of shares in Singapore.
The court also found that allegations by prosecution’s star witness Teo Chee Kong that he had paid RM29 million to Lim were unsupported by documentary evidence.
Abu Bakar further said that two prosecution witnesses who had also handed over monies to the MACC were not charged, unlike Lim.
Applying the principle that the benefit of doubt must be given to the accused where two inferences arise from the same facts, the court held that it was unsafe to convict Lim.
The trio were first charged on Dec 29, 2016 and claimed trial. The trial began on May 7, 2018 but was delayed due to the Covid-19 pandemic and several interlocutory applications.
The prosecution closed its case on May 16, 2024 after calling 46 witnesses.
On Dec 4, 2024, the court ordered the trio to enter their defence.
Ag Mohd Tahir began defending himself on April 30, 2025 while Fauziah gave an unsworn statement on Sept 26, 2025. Lim defended himself on Oct 22, 2025.
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 Datuk Ansari Abdullah, Sharatha Masyaroh John Ridwan Lincon, Fadzidahtul Ardianah, Rasrina Patrick T.
Rining and Noorsyazwani Sapri while Lim was represented by counsel Datuk Tan Hock Chuan and Baldev Singh.
Former Sabah Water Department deputy director Teo Chee Kong was initially charged separately on Dec 13, 2016, with 146 money laundering charges involving RM32.923 million and was expected to stand trial jointly with the trio.
However, he was discharged and acquitted by the same court on March 17, 2022, before later testifying as a prosecution witness in the case.
Earlier, on Feb 18, 2022, he had been granted a discharge not amounting to an acquittal (DNAA) on all 146 charges, before the MACC later imposed a RM30 million compound on him.
