This was disclosed by Sabah State Secretary Tan Sri Sukarti Hj Wakiman in a press release on Monday.
"The suspension for the director and deputy director is effective as of Oct 5th and 4th of this year respectively, the dates when the suspects were arrested," said Sukarti.
He added that the notices of suspension have been issued by the Sabah Public Service Commission to both the director and the deputy director of the state Water Department.
"The suspects are also not allowed to leave the state during this period of the investigation," he said.
Sukarti added that under the suspension, both the suspects were prohibited from entering the state Water Department office or the premises of any other Water Department offices in Sabah.
This follows a statement by the counsel for the director who had said that his client had told him that he had yet to receive any suspension order and as such, would return to work.
Counsel P.J Pereira said on Monday the director - who is at the centre of a probe into abuse of power and corruption involving RM3.3bil - would be back to work as usual Monday.
The Sabah Water Department deputy director, his "Datuk" brother and his brother's accountant were released on Monday following their remands over the corruption probe.
The deputy and his brother were released on an MACC bail of RM500,000 with two sureties, while the accountant was released on a RM50,000 bail.