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Thursday, March 20, 2025

Sabah Mineral Management’s ex-CEO files defence to lawsuit

 

Mahkamah kota kinabalu
Sabah Mineral Management Sdn Bhd is suing its ex-CEO Jontih Enggihon and businessman Tei Jiann Chieng for fraud, conspiracy to defraud and misrepresentation.

PETALING JAYA
A former senior officer of Sabah Mineral Management Sdn Bhd (SMM) has denied allegations of fraud, conspiracy to defraud and misrepresentation levelled at him, and says a civil suit brought by the company against him was designed to silence him.

“The action against (me) is tainted with mala fide with the intention to silence (me) from exposing the abuse of power, corruption and misconduct,” Jontih Enggihon said in a statement of defence filed in the Kota Kinabalu High Court on Monday.

He also accused Sabah chief minister Hajiji Noor, the chairman of SMM’s board of directors, of corruption, abuse of power, nepotism and cronyism.

SMM is a government-linked company owned by Sabah’s finance ministry. It manages and facilitates all mineral development matters within the state.

Jontih Enggihon
Jontih Enggihon.

Enggihon claims that throughout his tenure as CEO, which ran from Sept 1, 2021 to Aug 31, 2024, Hajiji held ultimate authority over the approval of prospecting licences and other mining-related matters.

“If any application is not approved in (a board of directors’) meeting, the said application can be approved vide the chief minister’s direct instructions either verbally or (by) text messages after the meeting,” he claimed in the 33-page document filed by solicitors Chin Jingulam & Associates on his behalf.

“The chief minister has the ultimate approving power, … whereby (his) decision and instruction would be carried out by the Sabah lands and surveys department and Pejabat Hasil Bumi Sabah, even if the decision disregards or contradicts a board meeting.”

Jontih alleged that there were specific instances where the chief minister instructed the approval of prospecting licences for individuals and companies with close ties to him.

He claimed that the chief minister explicitly directed that the applications from certain individuals and their affiliated companies should be prioritised and approved.

Jontih also alleged serious misconduct on the part of SMM’s current CEO and its company secretary.

He accused them of colluding to defy his instructions and intentionally misleading the board of directors, particularly concerning appeals lodged by two companies.

Jontih also accused the company secretary of failing to table the two companies’ applications despite the chief minister having minuted and verbally instructed that they be approved.

He alleged that the new CEO had misrepresented the chief minister’s instructions regarding the revocation of several approved applications.

Jontih says SMM had acted maliciously by conducting an internal investigation into his actions and bringing the current lawsuit.

He said the investigation and lawsuit were only initiated after he brought the alleged wrongdoings to the attention of the public through news portal Malaysiakini.

“The disclosure of the plaintiff’s (SMM) misconduct is strictly for upholding the plaintiff’s credibility and goodwill and public interest.

“The first defendant (Jontih) was preserving the goodwill and credibility of the plaintiff and the state minerals resources by exposing the abuse of power, corrupt practice and misconduct of the plaintiff and the chief minister to the general public,” he said.

Jontih said a non-disclosure undertaking he signed cannot legally prevent him from exposing illegal, corrupt or unethical conduct.

He said he has lodged reports with the Malaysian Anti-Corruption Commission and the police, detailing instances of the alleged abuse of power and misconduct.

He also insists that all his actions as CEO were carried out in compliance with the SMM’s standard operating procedures, under the direct instruction and authority of the chief minister, and pursuant to resolutions passed by SMM’s board.

He explicitly denies colluding with Tei Jiann Chieng, named as the second defendant in the lawsuit.

He said the court, “as the last baton of upholding justice”, is the only avenue left for himself and Sabahans at large to defend his and their constitutional rights and justice respectively.

In its statement of claim filed in January, SMM alleged that Jontih was engaged in a conspiracy to manipulate the issuance of prospecting licences in Tei’s favour.

SMM said Jontih colluded with Tei and persons unknown to make (and) publish two videos and two accompanying articles that were published by Malaysiakini on Nov 12 and 14 last year.

The company said that in the two videos, Jontih disclosed private and confidential information pertaining to the applicants and/or licencees, and internal discussions and procedures which are confidential in nature; and mixed such disclosure with false statements on impropriety and wrongdoing on the part of SMM, packaged as the truth.

“As a result, SMM is exposed to liability to its licensees and applicants, (and its) operations (have been) unlawfully interfered with. SMM, and by extension the Sabah state government, has suffered damage to its goodwill and reputation,” the 41-page document read.

SMM’s statement seeks multiple declarations by the court, including that Jontih acted fraudulently, dishonestly, in breach of fiduciary duties, and exceeded his authority as CEO.

The company wants the court to compel Jontih and the businessman to take down the two videos and any related articles published on the subject matter of the claim, and an injunction to restrain their republication in any form.

SMM is seeking general, aggravated, and exemplary damages from the duo, an account of their unlawful gains, the disgorgement of all profits made, restitution, and the reimbursement of all costs incurred in rectifying their breaches. - FMT

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