KOTA BARU: 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.
SPAN deputy public prosecutor Mohd Suhairy Zakaria said that 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.
"For instance, there was a case involving a project worth RM89mil where an illegal water connection was made to maximise profits.
"The culprits not only cause other users to face water supply issues but also lead to major losses for the water operators, with some cases amounting to as much as RM500,000," he said.
He said the theft of treated water was carried out in an organised manner to reap double profits.
"Based on cases handled in court, these activities are often concealed behind construction works, making it difficult for the authorities to detect.
"One of the modus operandi identified is direct, illegal tapping from underground main pipes, while the legal connection serves merely as a cover. The illegal pipes are the ones actually used at the project sites," he told reporters at the Kota Baru Court Complex here on Sunday (April 13).
He added that the digging and pipe installation works are usually carried out within areas owned by the contractors, further hampering enforcement efforts.
He added that about 40% of the cases have been brought to court, while the rest were subjected to compounds depending on the severity of the offence and the amount of loss incurred.
To strengthen enforcement action, the Water Services Industry Act 2006 (Act 655) was amended and gazetted in May this year, increasing the maximum penalty from RM100,000 to RM1mil.
"So far, no new cases have been prosecuted under the amended Act, as investigations and prosecution approvals are still ongoing. However, we will take stricter action moving forward," Mohd Suhairy said. - Bernama
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