SHAH ALAM – A controversy is brewing in Sabah over the alleged awarding of a massive coal exploration licence to a company linked to former PKR politician Datuk Farhash Wafa Salvador.
A report alleged that a company connected to Farhash, the former political aide to Prime Minister Datuk Seri Anwar Ibrahim, had been granted a coal exploration licence spanning an area almost three times larger than Kuala Lumpur.
The claims, first reported on July 21, have triggered fierce denials, a police report and calls for an official corruption probe.
Here is what we know so far about the scandal that's pitting politicians, student activists, and government-linked companies against one another.
A massive land deal at the heart of the controversy
A local news portal reported on July 21 that Bumi Suria Sdn Bhd had been granted exclusive rights to conduct coal exploration over 70,000 hectares of forested terrain within Sabah’s Kalabakan and Gunung Rara reserves, near the Kalimantan border.
The land, part of Sabah’s central biodiversity zone, spans an area roughly three times the size of Kuala Lumpur.
Ownership records show that Farhash and Aminuddin Mustapha, known in political and business circles as "Amin Botak", became directors and shareholders of Bumi Suria on May 7.
Just two weeks later, on May 21, the licence was allegedly reinstated, after having been revoked earlier in the year without explanation.
Prior to Farhash’s entry into the company, the licence had been granted in June 2023 and later suspended.
The report stated that Sabah Chief Minister Datuk Seri Hajiji Noor had supported the application, even marking his approval in handwritten notes to Sabah Mineral Management Sdn Bhd (SMM), the state’s mineral licensing body.
Bumi Suria’s mining ties run deep
The reported licence was not only significant due to its size but also because of Bumi Suria's connection to PT Bayan Resources TBK, Indonesia’s largest coal mining company. Owned by billionaire tycoon Low Tuck Kwong, Bayan entered into a joint venture with Bumi Suria in mid-2023. Bayan Resources has enjoyed booming profits following global energy disruptions due to the war in Ukraine.
According to the article, the same Sabah board meeting that approved Bumi Suria’s licence also greenlit a licence for Bayan Assets, a company wholly owned by Bayan and led by another billionaire, Lim Chai Hock.
Farhash responds: “False and defamatory”
On the same day the article was published, July 21, Farhash denied all allegations, describing them as baseless, malicious and damaging to his reputation.
“The article falsely claimed that I or Bumi Suria Sdn Bhd, was granted a coal mining exploration licence in Sabah by SMM.
“It also alleged that I received political favour or undue benefits through the transaction," Farhash said in his police report filed at Federal Police Headquarters.
Farhash’s lawyers also sent a cease and desist letter to the local news portal, calling the report false and defamatory.
“The article falsely attributes to him a personal interest and benefit in a licence that does not exist and misleadingly implies political impropriety or preferential treatment, which is both damaging and baseless,” Farhash’s lawyers said.
The letter demanded that the article be taken down within 48 hours and that a full and unequivocal public apology be issued.
SMM and state officials deny issuing any licence
In a statement, SMM Chief Executive Officer (CEO) Natasha Sim categorically denied the claims.
“SMM is not a licence-awarding body nor do we have jurisdiction to award or issue licences. No company with the name of Bumi Suria Sdn Bhd has ever been issued or awarded any prospecting licence by the state government as of today,” Natasha stated.
Hajiji himself has repeatedly stated that no mining licence has been issued by the state and that any such approval would require Cabinet discussion covering equity, royalties, fees and leases.
Whistleblowers, rejected bids and corruption claims
The local news portal also framed the Farhash-Bumi Suria case within the wider issue of corruption linked to mining in Sabah. It referenced businessman Albert Tei, founder of Zoop Technology, whose application for a mining licence despite covering a smaller area of 10,000 hectares was turned down.
Tei released video and audio recordings allegedly showing Sabah state assemblymen discussing bribes involving hundreds of thousands to millions of ringgit.
While he sought whistleblower protection, Anwar reportedly declined, prompting backlash from transparency advocates.
Former Malaysian Anti-Corruption Commission (MACC) chief Latheefa Koya reportedly handed over unedited versions of Tei’s recordings to MACC, after current chief Tan Sri Azam Baki dismissed the videos as not credible.
In late June, MACC charged two state lawmakers Yusof Yacob and Andi Muhammad Suryady Bandy along with Tei himself, triggering allegations of selective prosecution for ignoring more powerful individuals implicated in the videos.
Student activists demand investigation
On July 22, student group Suara Mahasiswa Universiti Malaysia Sabah (UMS) issued a public statement demanding that MACC open an immediate investigation into the Bumi Suria licence. They described the alleged 70,000-hectare deal as “unreasonable” and warned that it may be tied to the ongoing corruption scandal involving Gabungan Rakyat Sabah (GRS) leaders.
“We urge a comprehensive investigation by the authorities, especially the MACC, if there are criminal elements or misconduct in this newly exposed scandal,” the group stated.
They also vowed to continue their anti-corruption campaign “Gempur Rasuah Sabah”, aimed at uncovering elite political and business collusion.
A legal and political storm with no clear end
As of now, no mining licence has been officially confirmed and all parties involved from SMM to Farhash are denying wrongdoing. However, the story has gained traction due to its links with broader corruption allegations and ongoing investigations.
The controversy shines a light on the opaque nature of mining approvals in Sabah, a state whose rich natural resources are increasingly under pressure from both economic ambitions and political interests. Whether any wrongdoing occurred remains uncertain, but the calls for transparency are growing louder.