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Kota Kinabalu: Sabah Mineral Management Sdn Bhd (SMM) has initiated legal proceedings against news portal MalaysiaNow over allegedly false and defamatory reports concerning the politically-linked company Bumi Suria Sdn Bhd.

In a statement, SMM accused MalaysiaNow of publishing “numerous allegations which are false, misleading, and defamatory” regarding the purported awarding of a Prospecting Licence (PL) to Bumi Suria, a company linked to prominent businessman and former political aide Datuk Farhash Wafa Salvador Rizal Mubarak.

“At no point in time did MalaysiaNow seek SMM’s clarification prior to the publication. 

“The publications were biased, one-sided, and represent a calculated attempt by MalaysiaNow to defame SMM, its directors, and officers,” SMM stated, adding that it would pursue legal action against any other media outlet that republishes the claims.

The lawsuit comes after a series of articles and videos by MalaysiaNow suggesting that SMM had improperly awarded a prospecting licence to Bumi Suria for a 70,000-hectare forest reserve area in Kalabakan and Gunung Rara.

SMM rebutted this, reiterating that it has no legal power to issue prospecting or mining licences. 

It stressed that this authority lies solely with the Sabah Department of Lands and Surveys (JTU) under the Sabah Mining Ordinance 1960. 

JTU Director Datuk Bernard Liew later confirmed that no mineral-related licence had ever been issued to Bumi Suria.

Instead, SMM clarified that it had only issued a “Conditional Letter of Permission to Apply for a Prospecting Licence” to Bumi Suria following internal board deliberations, stressing that this document did not amount to an approval or issuance of any licence.

“SMM’s role is strictly limited to issuing conditional letters of permission to apply for a licence,” it said, adding that such a letter would only be issued after the agency’s board of directors had convened to review the application.

“This letter does not confer or award any licence. Interested applicants must submit complete documentation and undergo due diligence by SMM before other related government agencies conduct further checks,” it said.

The agency said it had, in the exercise of its functions, considered Bumi Suria’s application and issued conditional approval for its application.

“Bumi Suria did not proceed to formally submit any of the required documents for an application,” it added.

Consequently, on March 24, 2025, SMM issued an official letter revoking the permission to apply.

“These facts were maliciously omitted by MalaysiaNow,” the agency said.

SMM also took issue with the use of a photo of its chief executive officer, Natasha Sim, and her name in connection with an audio recording that they claim does not feature her voice and is not associated with her. 

“This deliberate act of misrepresentation is unacceptable and unethical,” it said.

The issue has drawn public scrutiny, particularly as SMM has been embroiled in controversy since a series of leaked videos and audio recordings emerged, alleging corrupt practices in the awarding of licences and implicating several Sabah politicians. 

Two state assemblymen, Datuk Yusof Yaacob (Sindumin) and Datuk Andy Suryady Bandy (Tanjung Batu), are currently facing corruption charges over the scandal.

Farhash, a former aide to PKR President Datuk Seri Anwar Ibrahim, has denied allegations that he owned Bumi Suria and that the company had been awarded a mineral prospecting or exploration licence. 

While confirming he is a director and shareholder, his lawyers have demanded the articles be removed.