Sabah Forestry Industries Sdn Bhd (SFI) has filed a RM1.4 billion lawsuit against the Sabah government, naming Chief Minister Datuk Seri Hajiji Noor as one of the defendants.

The suit, filed at the Kota Kinabalu High Court on March 12, accuses Hajiji of abuse of power, alleging that his actions led to the revocation of SFI’s timber concession, causing financial losses and damage to its reputation.

SFI’s legal representative, lawyer Chin Tek Ming, said the case also names the Sabah government as a co-defendant, holding it liable for the chief minister’s alleged misconduct.

“The lawsuit seeks a declaration that the chief minister misused his position for personal or political gain, and that the state government must bear responsibility,” Chin told reporters at a press conference in Kota Kinabalu on Tuesday. 

SFI was officially declared bankrupt in November 2021 after years of financial struggles. 

The company’s operations ceased in 2016, leaving hundreds of workers in limbo, many of whom continue to live in company quarters while awaiting unpaid wages and severance.

According to the statement of claim, Hajiji’s alleged interference resulted in the cancellation of SFI’s timber licence, which was then allocated to three other companies.

The suit demands compensation for financial losses, including the restoration of contractual rights, back payment of wages for affected workers, and damages for reputational harm.

SFI is also seeking an estimated RM1.4 billion in interest, calculated at 5% per annum from September 2021 to December 2024, along with general damages and legal costs.

Chin, speaking in his personal capacity, said the case highlights governance concerns and the need for transparency in Sabah’s resource management.

“This isn’t just about SFI; it affects Sabah’s economy and local workers,” he said.

Both Hajiji and the state government have yet to respond to the lawsuit. – March 18, 2025