Kota Bharu: The National Water Services Commission (SPAN) has revealed that contractors undertaking large-scale projects have been caught making illegal water connections to avoid paying supply charges to licensed operators.
According to BERNAMA News Agency, SPAN’s Deputy Public Prosecutor, Mohd Suhairy Zakaria, stated that the theft of treated water was carried out in an organized manner to reap double profits. These activities are often concealed behind construction works, making it difficult for authorities to detect. One identified modus operandi involves direct, illegal tapping from underground main pipes, with legal connections serving merely as a cover. The illegal pipes are the ones actually used at project sites.
Mohd Suhairy further explained that the digging and pipe installation works are typically conducted within areas owned by the contractors, which complicates enforcement efforts. On average, over 100 cases have been recorded each year over the past several years, including cases involving mega projects worth tens of millions to billions of ringgit. An example cited involved a project worth RM89 million where an illegal water connection was made to maximize profits.
The illegal activities not only cause other users to face water supply issues but also result in significant losses for water operators, with some cases amounting to as much as RM500,000. About 40 per cent of the cases have been brought to court, while the rest were subjected to compounds depending on the severity of the offense and the amount of loss incurred.
To enhance enforcement action, the Water Services Industry Act 2006 (Act 655) was amended and gazetted in May this year, raising the maximum penalty from RM100,000 to RM1 million. Although no new cases have been prosecuted under the amended Act yet, investigations and prosecution approvals are still ongoing. Mohd Suhairy emphasized that stricter action will be taken moving forward.