TRUTH. ACCURACY. OBJECTIVITY
Search
Close this search box.

Sabah UMNO calls for freeze on prospecting licences as mining scandal ignites political storm

The party says the people deserve answers as a controversial licence approval stirs public anger

Sabah UMNO has called for an immediate freeze on all mineral prospecting licences issued since 2023, following revelations that a company with alleged political connections was awarded exploration rights over a vast tract of land — despite lacking both financial credibility and industry experience.

The company, Lincah Hebat Utama Sdn Bhd (LHU), was granted a licence to explore 17,600 hectares covering Telupid, Beluran and Ranau. 

Various allegations hurled online on the prospecting license.


Public scrutiny intensified after claims emerged online that individuals linked to the company have close family ties to senior political figures in the Gabungan Rakyat Sabah (GRS) state government.

UMNO Sabah’s Strategic Communications Director, Datu Rosman Datuk Ahir Zaman, said the approval process raises troubling questions.

“How can a company that had been incurring losses and only changed its business scope to ‘mineral exploration’ after applying for the licence be given access to such a vast area?” 

“Does this not invite speculation that the licence was hastily awarded to fulfil certain agendas?” He said in a statement on Monday. 

Lincah Hebat Utama Sdn Bhd initially applied for a prospecting licence covering approximately 153,205 acres in 2019—comparable to the size of Melaka state—but the area was later reduced by over 70% to 43,490 acres by the GRS government when it was approved in January this year.

Rosman also criticised the Chief Minister’s recent remarks — specifically, the assertion that the licence only permits exploration, not mining — calling it a “technical excuse.”

“The Chief Minister’s statement that ‘the licence is only for exploration, not mining’ is merely a technical excuse that does not answer the core issue, which is the question of eligibility, credibility, and transparency,” he said.

“What’s even more concerning is how the public is now viewing the silence of top leaders in the state government as an attempt to cover up the truth.

“The people of Sabah deserve answers — not half-baked media statements,” he said. 

UMNO Sabah is urging the Malaysian Anti-Corruption Commission (MACC) and the police to launch a full and independent investigation into the licence approval. 

Rosman also called for the immediate suspension of all prospecting licences issued since 2023 until the investigation is complete, and demanded open explanations from the Chief Minister and the minister involved.

He went a step further, calling for the formation of a Royal Commission of Inquiry to review the entire licensing system for prospecting and mining in Sabah.

“Sabah’s natural resources do not belong to any individual or political elite. They are the people’s right, and must be managed fairly, transparently, and responsibly,” Rosman said.

“If the GRS government truly has nothing to hide, then they must be willing to be investigated — not hide behind procedural excuses.” – April 7, 2025 

Related

Scroll to Top