LABUAN: Member of Parliament Datuk Seri Suhaili Abdul Rahman said he should not be blamed for his hotel operating as a scam centre where 57 mostly Chinese nationals were arrested on Tuesday.
He admitted that “Sara Hotel” at Jalan Dewan belonged to him and although the scammers booked it after its April 1 closure date, it was “strictly good business deal to rent out the whole premise and any owner would have done that.”
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The scammers were targeting victims from South Korea. They comprised 50 men and seven women aged between 20 and 46. An array of electronic equipment were also seized with a total value of the assets estimated at RM131,500. All suspects were remanded.
The raid was the result of intelligence gathered by Sabah police Headquarters Commercial Crime Investigation Department (CCID) from Sabah districts and Labuan.
“Since the hotel rooms were vacant it was seen as a good deal to have them all rented out at between RM3,000 to RM2,000 depending on size of room and generating an income of about RM50,000 per month to cover operating and maintenance expenses,” he said.
“I felt nothing wrong as the tenants were introduced as investors in the agriculture industry who needed an operation centre.
“I cannot be expected to spy on their activities in the rooms,” he said, in response to netizens who blasted him in social media.
“It is unfortunate that it was a scam operation,” he said, and commended police for their swift action in arresting the suspects for further investigation.
Following the incident, the 29-room four-storey hotel’s management and operation team posted a notice announcing that the hotel has been permanently closed effective April 1, 2026 after 8 years in operation.
The hotel was built in the 1960s when Sabah’s the Chief Minister was Tun Datu Mustapha Bin Datu Haun used it as an Usno/Muis building.
It was purchased by Suhaili for about RM5 million who converted it into a hotel. There was popular “Malindo” restaurant on the ground floor specialising in Malay cuisine but closed during the Covid 19 outbreak.
