In a statement of claim filed last month, the state-owned company said Jontih Enggihon, its CEO between June 1, 2021 and Aug 31, 2024, abused his position to fraudulently grant approval for prospecting licences to companies linked to the businessman.
“In furtherance of the fraud and/or an attempt to conceal his wrongdoings and/or as reprisal against SMM, Jontih colluded with (the businessman) and persons unknown to make (and) publish two videos,” the document read.
It said the videos and two accompanying articles were published by an online news portal on Nov 12 and 14 last year.
“In the two videos, Jontih disclosed private and confidential information pertaining to the applicants and/or licensees; 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.
The statement of claim alleged that Jontih and the businessman, named as a co-defendant in the suit, had acted with common intention to advance their “illegal scheme or enterprise”.
“The consequences of these actions have caused irreparable harm to SMM’s reputation and operation, and by extension, to the Sabah state government,” the document said.
SMM’s statement seeks multiple declarations by the court, including that Jontih acted fraudulently, dishonestly, in breach of fiduciary duties, and in excess of his authority as CEO.
It is also seeking a declaration that he breached a written undertaking dated Oct 1, 2021 “to strictly observe and be bound to the non-disclosure of confidential information, trade secrets and proprietary data”.
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.
In its statement of claim, SMM said it had received applications for prospecting licences, which its board of directors reviewed and passed to other government agencies for action.
“In or about June 2024, SMM suspected that Jontih had tampered or attempted to tamper with the minutes of meetings of the board in order to fraudulently misrepresent that permission had been granted to companies linked to (the businessman),” it said.
It said the tampering was aimed at misrepresenting that certain companies linked to the businessman had been granted permission to apply for licences.
Following this, Jontih allegedly instructed the company secretary to prepare letters to two companies, falsely stating that their applications had been approved, the statement of claim said.
When the company secretary refused, Jontih was alleged to have instructed SMM’s technical team to prepare the letters.
The statement of claim alleges that on June 13 last year, Jontih instructed the company secretary to alter the minutes of the 12th board meeting to reflect that permission had been granted to the two companies, which the company secretary refused to do.
He is also alleged to have sent letters with SMM’s letterhead to multiple companies linked to the businessman, misrepresenting that they had permission to apply for licences.
He is alleged to have sent letters to the Sabah lands and surveys department falsely stating that these companies were entitled to prospecting licences.
According to the statement of claim, the SMM board met on Sept 25 last year and cancelled several prospecting licence applications, including those linked to the businessman.
Two days later, the businessman allegedly confronted SMM’s new CEO, Natasha Sim, to express his dissatisfaction.
“(He) threatened that he and his ‘consortium’ would not remain silent”, and is alleged to have said that “there will be an earthquake in Sabah” if the board did not reverse its decision.
In response, SMM said it lodged reports against the duo with the police and the Malaysian Anti-Corruption Commission.
SMM claims the businessmen aided and abetted in fraud by procuring letters in favour of companies linked to him and conspired with Jontih to cause it injury.
He is also alleged to have told Sim to pass a message to Sabah chief minister Hajiji Noor telling him to “await a time bomb” and saying he was prepared to “go to war against the state government” and bring about its downfall.
Jontih 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.