Macc Lists 5 Ideas To Tighten Governance In Sabah Mining Agencies

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MACC has recommended five measures to strengthen governance in two key state agencies, the Sabah Lands and Surveys Department (JTU) and Sabah Mineral Management Sdn Bhd (SMM), after uncovering weaknesses in how mining exploration licences were issued.
This comes as the two agencies are implicated in the Sabah mining scandal.
The audit, conducted by MACC’s Governance Division, found one weakness within JTU and four in SMM, the state-owned company overseeing mineral concessions.
Both bodies have come under scrutiny following revelations that their licensing processes were allegedly exploited in a mining scandal linked to controversial businessperson Albert Tei.
ADSTei, who has been charged in a separate corruption case, was accused of securing preferential access to mining concessions through political connections.
The scandal has since widened to implicate at least eight Gabungan Rakyat Sabah elected representatives and exposed gaps in how exploration and prospecting licences were vetted and approved.
Absence of clear SOPs
According to MACC, its review identified the absence of clear and comprehensive standard operating procedures (SOPs) for prospecting licence (PL) applications.
Applicants were allowed to submit a letter of interest (LOI) either to SMM or directly to the Chief Minister’s Office, creating ambiguity and inconsistency in the process.
The graft busters also discovered that certain applications which failed to meet due diligence standards were still forwarded to SMM’s board of directors, chaired by the Sabah chief minister, while no specific procedures existed for licence renewals or for resubmissions following rejection.
In response, MACC proposed five key improvements: clearer documentation of the PL application process, amending existing procedures so LOIs are channelled directly to SMM, updating due diligence protocols, establishing a dedicated SOP for licence renewals, and creating an online portal outlining SMM’s roles, functions and procedures.
“These recommendations aim to strengthen transparency, accountability and consistency in the management of mineral resources in Sabah,” MACC said in a statement.
During a presentation at Wisma Tanah dan Ukur in Kota Kinabalu, both agencies accepted the findings and signed a Governance Improvement Report.
The document was endorsed by JTU director Bernard Liew and SMM chief executive officer Natasha Sim, and witnessed by MACC deputy director Ahmad Shukri Taib.
Also present were integrity adviser to the chief minister Awang Samsul Baharam Bungso, and senior officials from both JTU and SMM.
The governance review is part of MACC’s broader effort to reform the state’s mineral licensing system, which has faced mounting criticism over opaque approvals and political interference. - Mkini

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