KOTA KINABALU: A Sabah-owned mining company has initiated legal proceedings against its former chief executive officer and a whistleblower, accusing them of fraud, breach of duties, and misconduct.
Sabah Mineral Management Sdn Bhd (SMM), the state government agency overseeing the mining sector, has filed the lawsuit in the High Court of Sabah and Sarawak to address these allegations.
The legal action comes amid a high-profile corruption probe into alleged kickbacks in the issuance of mining prospecting licences, a scandal that has implicated eight assemblymen, including three ministers.
Legal notices have been served on former SMM chief executive officer Jongh Enggihon @ Jongh Inggihon and external third party Tei Jiann Chieng, also known as Albert Tei, in Kuala Lumpur and Kota Kinabalu, respectively, ensuring they have been duly notified of the proceedings.
The lawsuit seeks redress for fraud, breach of fiduciary duties and confidentiality, tampering with official documents, conspiracy to injure by unlawful means, and potential collusion with third parties.
Enggihon and Tei are accused of misconduct that allegedly compromised SMM’s operations.
In a statement Friday (Jan 24), SMM said the legal action was necessary to protect the agency, the state government, and the people of Sabah.
It reaffirmed its commitment to transparency, accountability, and corporate governance.
The company has also lodged reports with the police and the Malaysian Anti-Corruption Commission (MACC) to support the ongoing investigation.
MACC chief commissioner Tan Sri Azam Baki confirmed that 18 witnesses, including the implicated assemblymen, have been questioned.
He added that the Deputy Public Prosecutor has requested further details before proceeding with any legal action.
Azam also said that he would personally provide the latest updates on the case in February.
SMM assured that it remains committed to managing Sabah’s mineral resources in accordance with legal and ethical standards while cooperating fully with authorities in the ongoing probe.