Former Sabah Water Department director Ag Mohd Tahir Mohd Talib was convicted on May 19, 2026, of 12 money laundering charges involving about RM49.7 million. He was sentenced to eight years in prison and fined RM284.3 million. He faces an additional 78 months in jail if he fails to pay the fine. The court allowed a stay of execution for both the sentence and the fine while his appeal is pending, maintaining his current bail conditions [1, 2, 3].
Ag Mohd Tahir's wife, Fauziah Piut, was acquitted and discharged of 19 money laundering charges involving around RM2.2 million. Former Sabah Water Department deputy director Lim Lam Beng was also acquitted and discharged of four related charges involving about RM2.3 million. Both Ag Mohd Tahir and Fauziah were found not guilty on two joint charges involving about RM6.5 million in assets [1, 2, 3].
The prosecution filed appeals on May 25, challenging what it described as the lenient sentence imposed on Ag Mohd Tahir and the acquittals of Fauziah and Lim Lam Beng. The Malaysian Anti-Corruption Commission said, "The prosecution team filed an appeal against the lenient sentence imposed on Ag Mohd Tahir, as well as the order acquitting and discharging Fauziah and Lam Beng" [1, 2, 3].
Forfeiture proceedings under Section 55 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) involving the accused's assets have been deferred until the appeal process concludes. The court has ordered the status quo to be maintained for all case exhibits and seized assets, with no returns allowed until the appeals are fully resolved [1, 3].
The original investigations into alleged money laundering by Sabah Water Department officials began in October 2016. Formal charges were filed on December 29, 2016, against Ag Mohd Tahir, Fauziah Piut, and Lim Lam Beng. The nearly decade-long trial ended with the convictions and acquittals announced in May 2026 [1].
The appeals now pending will determine if the current sentences and acquittals are upheld or revised. Meanwhile, enforcement actions related to asset forfeiture remain on hold until the appeals are finalized.
