The alleged Sabah mining scandal: the story so far

The alleged Sabah mining scandal: the story so far

FMT reviews the events since the release of ‘incriminating’ videos in December 2024, with two assemblymen and a businessman recently charged in court.

State assistant minister Andi Suryandy Bandy and assemblyman Dr Yusof Yacob were charged with corruption along with businessman Albert Tei on June 30.
PETALING JAYA:
On June 30, a Sabah state assistant minister, an assemblyman and a businessman were charged for corruption in a Kota Kinabalu court in connection with an alleged mining scandal—an affair that rocked, but failed to dismantle, chief minister Hajiji Noor’s administration.

State industrial development and entrepreneurship assistant minister Andi Suryady Bandy—the Kalabakan MP and Tanjung Batu assemblyman, and Sindumin assemblyman Dr Yusof Yacob both pleaded not guilty to accepting bribes of RM150,000 and RM200,000 respectively. Businessman Albert Tei claimed trial to two charges of paying them out.

Tei had earlier sought whistleblower status from the Malaysian Anti-Corruption Commission (MACC), but the request was denied on grounds that he does not qualify for protection under the Whistleblower Protection Act 2010.

Section 11(1) of the Act provides that “whistleblower” protection is not available to persons who have themselves participated in any improper conduct forming the subject matter of disclosure to the authorities.

How the allegations came to light

The scandal first burst into the public spotlight late last year, after a series of viral videos—allegedly recorded by Tei and published by Malaysiakini—appeared to implicate several Sabah state assemblymen in the receipt of illicit payments linked to the issuance of mineral prospecting licences.

Tei claimed the payments were made to sustain a pervasive “duit kopi” (bribery) culture within Sabah’s mineral sector. He told Malaysiakini he had spent substantial sums, allegedly exceeding RM1 million, which he claims were paid to several state assemblymen to secure prospecting licences.

He also claimed the elected representatives were “hard selling” the permits, with prices varying based on each representative’s position within the state government.

Almost two years earlier, on Jan 6, 2023, Sabah Barisan Nasional (BN), then a partner coalition within the state government, had attempted to overthrow Hajiji’s administration from within.

The “Kinabalu Move”, as it was called, saw Sabah BN chief Bung Moktar Radin withdraw the coalition’s support for the state government led by Gabungan Rakyat Sabah (GRS), citing a loss of confidence in Hajiji’s leadership.

The “coup”, however, failed to materialise after five Umno assemblymen defied the party line and backed Hajiji, allowing him to retain a majority in the 79-seat state assembly and banishing BN to the opposition bloc.

In his “exposé”, Tei accused Hajiji of securing the assemblymen’s support by offering them prospecting quotas through Sabah Mineral Management Sdn Bhd (SMM), the state-owned body charged with managing its mineral deposits.

Tei further claimed that Hajiji had caused an excessive number of permits to be issued, while revoking those issued previously.

He also alleged that the chief minister had pushed through amendments to the Sabah constitution in May 2023 to prevent “party-hopping” and preserve his coalition’s majority in the state assembly.

Citing immense pressure, Tei said he began to secretly record his meetings with nine state assemblymen.

He later submitted these recordings to MACC, claiming they contained direct evidence of corruption.

He further alleged that there were efforts by some to silence him, with others pressuring him into issuing fabricated statements to falsely portray the sums paid as mere “donations”.

On April 29, Tei said he had submitted nearly 300 pages of fresh evidence to MACC, which his lawyer claimed revealed abuses of power, a money trail involving proxies, and a clandestine share transfer.

In May, MACC announced it had obtained a forensic report on the videos and was continuing its probe.

Counter-narrative

The initial revelations left Hajiji’s administration on the ropes, but the chief minister appears to have emerged unscathed and has steadied his ship considerably.

Over time, a strong counter-narrative has emerged, framing the events as a “political power play” rather than a case involving widespread corruption.

On June 18, when responding to news of impending charges against two state assemblymen, Hajiji insisted the cases “won’t affect the state government”.

Nonetheless, he is expected to take a firm stand and will likely demand their immediate resignation, citing the need for them to clear their name in court since they held positions of trust.

SMM has taken its own legal action, filing a civil lawsuit against its former CEO, Jontih Enggihon, and Tei, alleging fraud, breach of trust, and a conspiracy to manipulate the issuance of prospecting licences—allegations which both have strenuously denied.

The case is pending in the Kota Kinabalu High Court.

Official responses and calls for due process

The unfolding scandal has prompted responses from key state and federal leaders, all of whom have largely emphasised the need to adhere to legal processes.

Hajiji has consistently denied all accusations made against him, insisting that both he and his government have “nothing to hide”, and describing the claims as a politically motivated attempt to undermine his administration.

The MACC has since cleared the chief minister of any wrongdoing, having taken statements from him on two separate occasions.

In April, MACC chief commissioner Azam Baki confirmed that Hajiji had extended full cooperation from the outset, adding that the state government had not interfered in the investigation at any stage.

Meanwhile, the chief minister himself has publicly called for the authorities to investigate both the givers and recipients of the alleged bribes, reiterating his commitment to transparency.

Domestic trade and cost of living minister Armizan Mohd Ali has also vehemently denied allegations of wrongdoing levelled at him.

The GRS deputy secretary-general described claims that he had gone to Jakarta in 2023 to negotiate a purportedly “secret” minerals deal as “pure slander”, clarifying that he was there on official business.

Armizan has also challenged opposition politicians who have amplified anonymous accusatory messages to name their sources, and has threatened them with legal action for defamation.

Sabah speaker Kadzim Yahya, implicated by Tei in a secretly recorded video, has also denied allegations of corruption. He was reported by The Star as saying he had been “entrapped”, and announced plans to lodge a police report to clear his name.

Prime Minister Anwar Ibrahim, for his part, has insisted he will not interfere in the probe.

“Investigations are the job of MACC or the police. Prosecution is the job of the attorney-general. Judgment is the job of the courts.

“The prime minister’s role is to ensure the entire system functions well,” he was quoted by the Malay Mail as saying.

Anwar also stressed the importance of due process and the need to uphold the rule of law.

MACC’s role and challenges

The MACC has served as the primary investigative body in the matter.

It concluded its initial probe into Jontih and Tei at the beginning of this year, and submitted its findings on Jan 21 to the Attorney-General’s Chambers for review and action.

However, the anti-graft body came under scrutiny the following month, when Azam claimed that its forensic analysis of the initial eight video clips revealed elements of enhancement, editing and other alterations.

He said that as a result, the MACC took the view that the footage was “lacking in credibility” and would not be admissible as evidence in court.

However, following the submission of 10 new, unedited videos by Lawyers for Liberty on March 11, MACC said it had conducted a thorough forensic analysis, examining them for signs of editing, frame breaks, doctoring and superimposition, with particular attention given to the accompanying audio.

Deploying a large team to conduct a comprehensive probe in Sabah, MACC summoned Tei and eight assemblymen for further questioning. It also collected additional audio, video and documentary evidence.

This culminated in two arrests on June 18. The two men were detained after presenting themselves to MACC’s offices in Putrajaya and Kota Kinabalu, respectively. Both were released on bail.

A third arrest followed five days later.

Stability and trust

Thus far, Hajiji has demonstrated steady leadership in navigating the political turbulence sparked by the allegations, defusing a potential crisis triggered by Sabah BN’s withdrawal, and preserving governmental stability to avoid a mid-term collapse and a premature state election.

His openness to investigations, respect for the MACC’s independence, and resolve to root out corruption within the state government are likely to strengthen public trust in his coalition’s pledge to uphold clean governance.

Ultimately, the full story of what transpired will likely only become clear several years from now, when all civil and criminal proceedings have run their course.

However, with state elections due by December this year, the court of public opinion is set to deliver its verdict much sooner.

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