Singapore mining firm's MD refutes alleged role in Sabah graft case

Summary

• Southern Alliance Mining managing director Pek Kok Sam denies claims he funded bribes in the Sabah mining scandal, calling the allegations defamatory and false.

• He says the group lawfully acquired stakes in two local firms with prospecting licences and Albert Tei had no involvement.

• The company has issued a letter of demand and filed a police report against the media outlet that published the claims.

Southern Alliance Mining Ltd has strongly denied claims linking its managing director, Pek Kok Sam, to the Sabah corruption scandal.

This follows news reports that the MACC was probing a Singaporean tycoon allegedly linked to Albert Tei, the whistleblower in the scandal.

In a response, Pek said the company and its subsidiaries issued a letter of demand to Malaysia Corporate, which published the claims linking him to the scandal.

The group also lodged a police report against the site, he added.

“The group and Pek collectively strongly deny and refute the allegations, which are highly defamatory and factually inaccurate,” said the managing director in a statement dated July 4 on the company’s website.

He added that the group has appointed a legal counsel to advise it on further action.

On July 2, the MACC said it is investigating Pek (above) after an article reportedly painted the tycoon as the person who financed Tei’s bribes to Sabah Umno leaders, saying the graftbuster is seeking to verify the information.

Since November, Tei has released a trove of videos, documents, and WhatsApp message screenshots to the MACC, allegedly implicating several assemblypersons in a mining scandal.

The businessperson claimed he paid bribes to the assemblypersons in exchange for mineral exploration licences.

Group says mineral deals legal

Pek said the group became aware of the Sabah government issuing prospecting licences in 2022, which piqued the group’s interest in exploring minerals in the state as an opportunity to diversify its portfolio.

It subsequently entered into joint ventures to acquire local companies Teguh Permata Sdn Bhd (TPSB) and Bumi Kinabalu Resources Sdn Bhd (BKRSB), both of which already held such licences, he said.

He added that the acquisitions were legally conducted, fully disclosed in the company’s financial statements, and facilitated by appointed legal counsel.

“Payments of consideration for the acquisition of these companies by the company were made directly to the promoters of these respective companies.

“This is contrary to the allegations made in the articles,” he said.

Pek emphasised that Tei did not have any role in any of the companies involved.

“The group and Pek would like to reiterate that no funding to any party for the purpose of obtaining a mineral licence by way of political corruption and/or bribery for any projects was provided by the group nor Pek,” he added.

He said he has committed to keeping the company’s board informed of any developments, and that the board will monitor the situation closely.

The company will make further announcements if necessary, he added.

Corruption charges

On June 30, Tei was charged in court with bribing Sabah Industrial Development and Entrepreneurship Assistant Minister Andi Suryady Bandy and Sindumin assemblyperson Yusof Yacob to get help with mineral prospecting licences.

At the same time, Andi was charged with receiving RM150,000 in cash from Tei in exchange for facilitating a prospecting licence application for Syarikat Sinaran Hayat Sdn Bhd.

Yusof was charged with receiving RM200,000 in cash from Tei, allegedly to help process a prospecting licence for Syarikat Nusa Kini Sdn Bhd.

All three pleaded not guilty before Sessions Court judge Jason Juga.

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