Sabah Mineral Management Sdn Bhd (SMM) is taking legal action against its former chief executive officer Jontih Enggihon for allegedly acting beyond his authority to benefit “entities with potential conflict of interest.”

In a statement, the company said it has carried out an internal investigation which purportedly revealed breaches of fiduciary duties, alleged fraudulent activities, misrepresentation or deception to SMM's board of directors and misconduct by Jontih.

“In response to these findings, the company has filed formal...