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Tuesday, March 18, 2025

Sabah govt denies misfeasance claims in new Sabah Forest Industries lawsuit

 

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Sabah attorney-general Brenndon Keith Soh said the Sabah state government would ‘vigorously’ resist the new lawsuit brought by Sabah Forest Industries. (Bernama pic)

PETALING JAYA
The Sabah government has strenuously denied allegations of misfeasance contained in a fresh suit brought by the receivers and managers of Sabah Forest Industries Sdn Bhd, a company in liquidation.

Sabah attorney-general Brenndon Keith Soh insisted the allegations were “not only frivolous and vexatious but are also baseless” given that there are other ongoing lawsuits between the parties.

Soh did not furnish details of the new lawsuit brought against the state government or the specific allegations made against it.

“We vigorously resist these claims and will be filing our appearance today.

“The matter will be fully ventilated before the court, and we trust that the right decision will prevail in due course,” he said in a statement.

Soh also said the state government would file its defence to the claim in due course.

Sabah Forest Industries, a pulp and paper mill, was wound up by the court in 2021 for failing to pay its debts.

At the time, it was one of the largest timber growers and wood processors in the country. However, the company had been in financial trouble for several decades.

Earlier today, lawyer Chin Tek Ming told a press conference in Kota Kinabalu that a lawsuit had been filed last week on behalf of C Narendrakumar, the receiver and manager of Sabah Forest Industries.

Chin alleged that chief minister Hajiji Noor had abused his power and committed misconduct by cancelling Sabah Forest Industries’s logging contract and giving it to three other companies, causing it financial and reputational harm.

Chin said the lawsuit is seeking several declarations, namely to hold Hajiji liable for misappropriation, and that he abused his office for personal gratification and/or benefit.

The lawsuit also seeks to hold the state government vicariously liable for Hajiji’s action as well as damages.

Chin said a copy of the writ had been served on the state government today. - FMT

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