Malaysia

Sabah Mineral Management takes legal action against former CEO over alleged misconduct

Internal probe uncovers breaches of fiduciary duty and fraudulent activities, prompting reports to MACC and the police

Updated 1 year ago · Published on 18 Nov 2024 6:53PM

Sabah Mineral Management takes legal action against former CEO over alleged misconduct
SMM has engaged an external legal counsel to explore further civil actions against Enggihon to recover financial losses or address reputational damage.- November 18, 2024

by Jason Santos

SABAH Mineral Management Sdn. Bhd. (SMM) initiated an internal investigation which has revealed significant breaches of fiduciary duties, alleged fraudulent activities, misrepresentation to the board, and misconduct by its former Chief Executive Officer, Jontih Enggihon.

Enggihon recently made headlines for accusing Sabah Chief Minister Datuk Seri Hajiji Noor of abusing his power in decisions related to SMM when a video related to the incident surfaced. 

However, his allegations led the Sabah government to lodge a report with the Malaysian Anti-Corruption Commission (MACC), citing alleged misconduct during his tenure as SMM’s CEO.

In response to the findings of its internal investigation, SMM has filed formal reports with both the MACC and the police, said SMM CEO Natasha Sim in Kota Kinabalu today.

“The investigation identified multiple instances where Enggihon acted beyond his authority, benefiting entities with potential conflicts of interest, in collusion with a third party representing a cartel of interests. 

“These actions were conducted without the knowledge or approval of the Board of Directors, constituting a serious breach of Company policies and governance standards,” Sim said.

She added that SMM has engaged an external legal counsel to explore further civil actions against Enggihon to recover financial losses or address reputational damage.

“SMM remains committed to upholding the highest standards of corporate governance, transparency, and accountability in all its operations.

“The Company is dedicated to protecting the interests of its stakeholders and the people of Sabah and will not tolerate any form of misconduct that compromises the integrity of its operations,” she added.

Sim also assured stakeholders that SMM is fully cooperating with the MACC and the police, providing all necessary assistance to ensure the matter is resolved under the law. – November 18, 2024

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