SMM sues MalaysiaNow for defamation, denies issuing mining licence to politically-linked firm

SMM sues MalaysiaNow for defamation, denies issuing mining licence to politically-linked firm



An undated photograph shows the entrance of Sabah Mineral Management office. — The Borneo Post pic

Friday, 25 Jul 2025 4:51 PM MYT


KOTA KINABALU, July 25 — 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 noted this yesterday when saying 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 was not an approval or the issuance of any licence.

“However, Bumi Suria did not proceed to formally submit any of the required documents for an application. Consequently, on March 24, 2025, SMM issued an official letter of cancellation of permission to apply to Bumi Suria Sdn Bhd.

“These facts were maliciously omitted by MalaysiaNow,” SMM 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 Sabahan 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.