Southern Alliance Mining (SAM) has issued a statement on the alleged involvement of its managing director Pek Kok Sam in a mining scandal in Sabah. The group and Pek “collectively strongly deny and refute the allegations, which are highly defamatory and factually incorrect”, the statement reads.
Pek has been identified as the financial backer of Albert Tei, who has been charged on Monday alongside assemblymen Yusof Yacob and Andi Suryady Bandy with bribery in exchange for helping to facilitate the approval of a mineral prospecting licence. The bribes were alleged to be over RM350,000.
Tei released covert videos showing state lawmakers engaged in bribe negotiations with him, implicating several prominent figures in Malaysia’s second-largest state.
On July 2, the Malaysian Anti-Corruption Commission (MACC) launched an investigation into Pek, who is accused of bankrolling efforts to secure lucrative mining concessions in Sabah.
SAM’s bourse filing on July 4 sets out three facts. It claims that the group formed joint ventures with partners Teguh Permata (TPSB) and Bumi Kinabalu Resources (BKRSB) who had already obtained prospecting licenses for exploration activities, after becoming aware that the Sabah state had issued these licences to various parties.
Next, SAM says that it appointed a legal counsel to undertake the acquisitions which were disclosed in its full year results for the FY2023. There, Tei was not mentioned as a director or shareholder or officer of any of the above mentioned entities.
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“Payment 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,” the statement reads.
Finally, SAM says that it would like to reiterate that no funding to any party for the purposes of obtaining mineral licence by way of political corruption and/or bribery for any projects was provided by the group nor Pek.
SAM has issued a letter of demand for the defamatory statements and lodged a police report, and says that the group and Pek will fully cooperate with any investigative authorities if necessary.
Shares in Southern Alliance Mining closed 5 cents lower or 9.804% down at 46 cents on July 4.
