The former Sabah State Water Department director accused of laundering tens of millions of ringgit has denied orchestrating a kickback scheme and claimed that most of the RM23 million in cash discovered in his office pantry belonged to others.

Over two days of testimony before the Special Corruption Court in Kota Kinabalu, Ag Mohd Tahir Mohd Talib sought to distance himself from both the alleged “centralised collection” of commissions and the millions of ringgit in unexplained cash seized by authorities in 2016.

On Wednesday, Ag Mohd Tahir told the court he had never been involved in any “centralised collection” of commission money from state water projects — rejecting claims made by his former deputy, Teo Chee Kong, who previously accused him of masterminding the scheme.

“I was accused by Teo of being the mastermind,” the 63-year-old said. 

“I want to make it clear that I was never involved, I did not initiate it, and the idea did not come from me. Whatever story he came up with is entirely his own fabrication,” he said. 

According to Teo’s earlier testimony, the practice of collecting commissions from district engineers and contractors had allegedly begun as far back as 1989 — more than a decade before Ag Mohd Tahir assumed the director’s post in 2003.

Ag Mohd Tahir also denied knowledge of any formulas or percentages used to distribute such commissions.

“I never issued any instructions. I had no knowledge of how commissions were divided or who received what,” he said.

He refuted Teo’s claim that a 1.5% cut from project payments was reserved as goodwill for senior officials, including the Infrastructure Minister and ministry staff at the time. 

On allegations that he instructed Teo to collect 10.75% from district engineers, he replied: “I never appointed Teo as a runner and never received any share of the money.”

Asked why he did not stop the alleged practice, Ag Mohd Tahir claimed he feared Teo’s influence and alleged underworld links.

“He came from a wealthy family with powerful connections in politics and business. His elder brother was a major contractor. I was cautious from the start,” he said, adding that he suspected “gangster groups” were involved.

On Thursday, Ag Mohd Tahir turned to the question of the RM23 million in cash seized from a pantry adjacent to his office during a raid by the Malaysian Anti-Corruption Commission (MACC) in 2016.

He told the court that RM20 million of the cash had already been there when he took office and only RM3 million — kept in a knapsack — belonged to him.

“A large portion of the money in the pantry was not mine. It was already there when I first entered the office. 

“But over time, I did keep some of my own money there — about RM3 million — mainly because my younger brother, who was the Treasurer of the UMNO Kimanis Division, would occasionally come to ask for political donations,” he said. 

He also said a sign marked “Go Away” — found on the pantry door — had been in place before he assumed the role, suggesting he had not been the one to conceal the funds.

When cross-examined by Deputy Public Prosecutor Mahadi Abdul Jumaat, Ag Mohd Tahir rejected the assertion that he alone had access to the pantry. He said the keys were held by his personal assistant.

Mahadi: “In the pantry and inside the knapsack, there was nothing belonging to anyone else. Agree?”

Ag Mohd Tahir: “Only the contents of the knapsack were mine.”

Mahadi: “So there were items in the pantry that belonged to someone else?”

Ag Mohd Tahir: “Yes.”

Mahadi: “What items were those?”

Ag Mohd Tahir: “A large amount of cash.”

Ag Mohd Tahir also provided explanations for his family’s financial holdings, saying he had earned millions over the years through private business partnerships with long-time associates Haris, Michael Wong, and his brother, Fauzi.

He estimated his personal earnings from these ventures — which he claimed were paid in cash — to be over RM47 million. 

This included RM30 million from Wong, RM5 million from Haris, and RM12 million from Fauzi, who he said had secured government contracts partly due to his UMNO connections.

“All the money I kept at home — and the money used to buy the cars and watches — came from Haris, Michael Wong, and Fauzi, and some from my salary,” he said.

He said his wife, Fauziah Piut, had used the funds to purchase branded watches and jewellery later seized by MACC. He also denied knowledge of her 19 bank accounts holding RM2.2 million or the full extent of the jewellery collection, which was reappraised from RM1.7 million to RM4.1 million in 2023.

Ag Mohd Tahir is standing trial alongside his wife Fauziah, 60, and former deputy director Lim Lam Beng, 66. 

The trio faces 37 charges of money laundering involving RM61.57 million in cash, savings, and luxury items — allegedly acquired between October and November 2016.

The alleged offences span multiple locations, including JANS headquarters, a Sembulan residence, commercial buildings in Kuala Lumpur, bank branches, and a condominium in Sulaman.

The prosecution is led by Deputy Public Prosecutors Mahadi Abdul Jumaat, Haresh Prakash Somiah, and Zander Lim. Defence teams include Datuk Ansari Abdullah and Erveana Ansari for Ag Mohd Tahir and Fauziah, and Datuk Tan Hock Chuan, Baldev Singh, Karpaljit Singh, and Kelvin Wong for Lim.

The trial will resume on 23 July. – June 26, 2025