Cartel and threats: Sabah mineral group cries 'slander', lodges report

Summary

• The Sabah Mineral Operators’ Association says its members, who are ex-top officials, are not part of an alleged cartel seeking to monopolise mining activities in the state.

• The association dismisses the allegations as “malicious and nonsensical”.

Members of the Sabah Mineral Operators’ Association (PPGS) have filed a police report over articles and videos circulating on social media, alleging they contain defamatory content.

In a media statement, PPGS committee members, comprising mainly retired senior enforcement officers, voiced concern over what they described as a targeted smear campaign.

“Based on the angle and aspects of the slanderous content being spread, we suspect that the individual spreading the slander on social media is a ‘propaganda’ person linked to a political party in Sabah,” they said.

They stressed that the association has no political affiliations.

“We would like to emphasise that PPGS is not involved in any activities or political parties. Our role is to advance the mining industry in Sabah,” the statement continued.

While the committee did not name any political party, the remarks appear to be aimed at the administration of Sabah Chief Minister Hajiji Noor, who leads the Gabungan Rakyat Sabah (GRS) and is currently mired in a corruption scandal.

Malaysiakini understands that the businessperson who exposed the scandal, along with directors in a related mining consortium, are office bearers in PPGS.

‘In Hajiji’s own words…’

According to the committee, Hajiji explained in the state legislative assembly on April 17 the responsibilities and role of prospecting licence (PL) holders.

PPGS cited Hajiji as stating: “Mineral exploration activities are indeed complex, from the technical aspects such as the geology of the area, the types of minerals, infrastructure, and others that require high capital and high risk, necessitating large initial investments without any guaranteed returns. Therefore, this measure is to protect the government from liabilities and financial risks, as all exploration costs will be fully borne by the private companies holding the (PL).”

The association pushed back against claims that its members form a “cartel”, that they have threatened Hajiji, or that they control 21 PLs covering one million acres (400,000 hectares), calling these allegations “malicious, baseless, illogical, and utterly misleading.”

They clarified the definition of a cartel and refuted the characterisation: “First, the definition of a cartel is - a group of independent producers aiming to collectively increase profits, control the market, and manipulate prices to gain greater profits - according to the dictionary.”

PPGS explained that its PL-holding members are only allowed to access exploration zones on foot and have not deployed any heavy machinery.

“Due to the flawed and failed policies, standards, and governance of the state government in managing exploration activities, companies associated with our members have suffered millions of ringgit in losses,” the statement said.

They added that PL holders are prohibited from conducting any mining, extraction, transportation, or sale of minerals. Thus, no profit has been generated from exploration activities.

‘Distraction tactic’

The committee also noted that PL holders receive no land or incentives from the state government. All costs are privately financed.

“Therefore, the slander spread on social media, labelling our members as a cartel, is false and malicious, intended to damage the image and reputation of our members.

“We know the slanderers aim to exploit this opportunity to manipulate the narrative and facts to cover up the mistakes and failures of the government in the recent scandal,” it said.

The committee also challenged Hajiji to substantiate claims that threats were made against him.

“Secondly, the slander regarding threats made against Hajiji. We challenge Hajiji to provide evidence that he was threatened and the police report he made,” it added.

‘Financially nonsensical’

Responding to allegations about the control of 21 PLs over 400,000 hectares, PPGS highlighted the financial and logistical implausibility.

They pointed out that at the rate of RM50 per hectare collected by Sabah Mineral Management Sdn Bhd (SMM), a PL over 400,000 hectares would cost RM20 million in cash and is only valid for two years.

“Even if the licence is granted for a 20-year period, the exploration activities within an area of 400,000 hectares are impossible to complete within 20 years.

“Furthermore, every licence renewal after two years is also subject to a ‘management fee’ of RM20 million. Hundreds of millions to billions of ringgit are required to carry out exploration and prospecting activities over 400,000 hectares of land without any guarantee of returns or risk mitigation from the state government, as explained by Hajiji in the state assembly.

“Therefore, any talk about exploration activities concerning an area of 400,000 hectares is nonsensical, as it would be a losing venture and an utterly illogical idea. Only a fool or someone insane would believe these slanders and accusations.”

PPGS also underscored the professional backgrounds of its members.

“Furthermore, the majority of our members are retired senior enforcement officers who have a deep understanding of the law.

“If our involvement in mineral exploration activities were illegal or against the interests and development of Sabah, we would have withdrawn long ago.”

The association expressed confidence that police, who are investigating its members’ report under Section 500 of the Penal Code and Section 233 of the Communications and Multimedia Act, will take action.

“We issue a strong warning to those who spread the slander: we will fully cooperate with the police to track you down,” the committee warned.

Sabah scandal: MACC still waiting for forensics report, calls for patience

Sabah polls: GRS to discuss possible cooperation with Harapan – Hajiji

Zaid: Execute investigators, prosecutors enabling corruption

Sabah PAS leader raises evils of graft, cites state's underdevelopment

Sabah assembly says no to question on 'bribery' involving speaker, govt reps

COMMENT | Hajiji's hasty exoneration from alleged Sabah corruption