SMM files suit against ex-CEO alleging fraud, wrongdoing

SMM files suit against ex-CEO alleging fraud, wrongdoing

Jontih Enggihon has denied all accusations and previously said he intends to bring his own RM30 million lawsuit against Sabah Mineral Management Sdn Bhd.

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Sabah Mineral Management Sdn Bhd said it is filing the lawsuit ‘to safeguard its interests, as well as the state government and the people of Sabah’.
PETALING JAYA:
Sabah Mineral Management Sdn Bhd (SMM) has launched legal action in the High Court of Sabah and Sarawak against two individuals, alleging fraud and other wrongdoing.

SMM said the proceedings were brought “to address serious allegations of misconduct and breaches of trust” involving its former CEO, Jontih Enggihon, and another individual.

Jontih had previously denied any wrongdoing in the matter and announced plans to file his own RM30 million lawsuit against SMM and two others, citing a “malicious conspiracy” to injure his reputation.

In a statement today, SMM, which oversees all mining activity in Sabah, said its lawsuit also involves claims of breaches of fiduciary duties and confidentiality, tampering with official documents, conspiracy to injure by unlawful means, and potential collusion with third parties.

“SMM is taking this step to safeguard its interests, as well as the state government and the people of Sabah.

“The company will continue to maintain the highest standards of corporate governance and remain accountable to the state and the people,” the statement read.

SMM said cause papers have been duly served on the defendants in Kota Kinabalu and Kuala Lumpur, thus ensuring proper notification of the proceedings.

It also said reports have also been lodged with enforcement agencies, including the police and the Malaysian Anti-Corruption Commission “to support broader investigations into the matter and compliance with regulatory obligations”.

“The company remains committed to upholding integrity, accountability and transparency in the management of Sabah’s mineral resources and ensuring that all operations align with legal and ethical standards,” it said.

On Tuesday, MACC announced that it had completed its probe and submitted all investigation papers to the Attorney-General’s Chambers.

The investigation, which commenced in November, saw the anti-graft body summon Jontih and several assemblymen to have their statements recorded.

It arose after a businessman, claiming to be a whistleblower, released a series of videos on Malaysiakini which he claimed exposed corrupt practices in the issuance of prospecting licences.

A number of classified documents were also leaked by unknown persons on social media.

Jontih had, at the time, denied allegations that he had colluded with the “whistleblower” in the matter. He said claims that he had acted as a middleman between the “whistleblower” and the assemblymen had been fabricated.

He also said he had documents which pointed to a corruption scandal and was willing to submit them to MACC.

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