Sabah Mineral takes legal action against ex-CEO over 'breach of fiduciary duties'

Sabah Mineral Management Sdn Bhd (SMM) is taking legal action against its former chief executive officer Jontih Enggihon for allegedly acting beyond his authority to benefit “entities with potential conflict of interest.”

In a statement, the company said it has carried out an internal investigation which purportedly revealed breaches of fiduciary duties, alleged fraudulent activities, misrepresentation, or deception to SMM’s board of directors and misconduct by Jontih.

“In response to these findings, the company has filed formal reports with both the MACC and police.

“The investigation identified multiple instances where Jontih acted beyond his authority and actions intended to benefit 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,” SMM CEO Natasha Sim said.

In addition to reporting the alleged misconduct to the authorities, SMM said it has engaged lawyers to explore civil actions against Jontih to seek redress for the company’s financial losses and reputational damage.

The company, however, did not provide further details on what were the actions that Jontih had allegedly committed.

‘No collusion’

For the record, Jontih was recently featured in several Malaysiakini articles where he accused Sabah Chief Minister Hajiji Noor of abusing his powers.

READ MORE: Sabah reps' alleged corruption videos: What has happened so far

In a video recorded on Oct 1, Jontih claimed Hajiji as SMM’s chairperson interfered with the selection process of prospecting licences and was looking out for the interests of one contractor.

The video was among a slew of recordings being released by a whistleblower implicating various Sabah lawmakers in a corruption scandal.

Hajiji had denied involvement in the scandal and denounced it as a bid to undermine his administration.

Jontih, meanwhile, denied colluding with the whistleblower but claimed to have evidence to substantiate his claims against Hajiji.

Hajiji is also SMM chairperson.

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