KOTA KINABALU: The Sabah government has strongly denied allegations of misconduct in a RM1.41bil lawsuit filed by Sabah Forest Industries Sdn Bhd (SFI).
Sabah State Attorney-General Datuk Brenndon Keith Soh confirmed that the Writ of Summons was received on March 17 from the law firm Chin Jingulam & Associates, representing SFI and its Receiver and Manager, Datuk Narendrakumar Chunilal Rugnath.
"For the record, the Chief Minister of Sabah and the state government unequivocally deny all allegations of misfeasance in public office made by the plaintiffs," Soh said in a statement on Tuesday (March 18).
He dismissed the claims as “frivolous, vexatious, and baseless,” especially given the parties' ongoing legal proceedings.
"We will vigorously resist these claims and have instructed the filing of a comprehensive defence. We will not allow these unfounded allegations to proceed unchallenged," he added.
SFI’s lawsuit, filed at the Kota Kinabalu High Court on March 12, accuses Chief Minister Datuk Seri Hajiji Noor of abusing his power, leading to the revocation of the company’s timber concession.
According to the Statement of Claim, Hajiji’s alleged interference resulted in the cancellation of SFI’s logging licence, which was then allocated to three other companies.
However, Soh stressed that the state government stands by its actions and remains committed to upholding its integrity.
"This matter will be fully ventilated before the court, and we trust that the right decision will prevail in due course," he said.
The Sabah government is expected to file its Memorandum of Appearance in court on March 18.
Earlier, SFI’s legal representative, Chin Tek Ming, said the lawsuit has far-reaching implications for Sabah’s workforce and governance.
“This is not just about SFI. It affects Sabah’s economy and the livelihoods of its people, especially the employees who have suffered due to these actions,” Chin said.
Once a major player in Sabah’s timber industry, SFI was declared bankrupt in November 2021 after years of financial struggles. Its operations ceased in 2016, leaving hundreds of employees in limbo, many of whom still reside in company quarters while awaiting unpaid wages and severance.
Chin insisted his decision to speak at the press conference was not politically motivated but driven by a commitment to justice and transparency.
“As a Sabahan, I feel compelled to bring this issue to public attention. We cannot turn a blind eye when allegations of abuse of power and misconduct involve the highest levels of leadership,” he said.
