These PLs would have granted the cartel, said to consist of a businessman and former directors of several state agencies, mining rights for sites with a total area of almost one million acres or 5% the size of Sabah.

The existence of a cartel was first highlighted in September by Sabah Mineral Management Sdn Bhd (SMM) following internal investigations carried out by the state government-linked company.

A source close to the matter, who spoke on condition of anonymity, said the first batch of the PLs, comprising five licences, was approved with the help of a middleman.

They were for sites with a total area size of 130,000 acres, the source said.

According to the source the PLs were recommended to the board for approval without any due diligence being conducted on the applicant companies.

“And at every (SMM) board meeting more applications would be submitted by companies controlled by the businessman for the right to mine in different areas,” the source said.

FMT is withholding the identity of the said businessman.

The source also said that a middleman linked to the businessman would push for the applications to be approved by the board “in bulk”, instead of each application being discussed on its own merits.

The source said SMM has audio recordings and meeting minutes to back its claims, adding that board members had taken notice of the middleman’s conduct.

The Malaysian Anti-Corruption Commission is currently probing allegations of corruption involving a businessman and several Sabah assemblymen linked to the alleged scandal.

On Wednesday, Parti Gagasan Rakyat Sabah Youth said videos linked to the controversy clearly show that Sabah chief minister Hajiji Noor had decided to revoke a prospecting licence due to the existence of a cartel.