Rep fails to compel Sarawak to disclose Petronas deal


Desmond Davidson

THE Batu Lintang assemblyman has failed in his bid to get the Sarawak assembly to compel the state government to make a full disclosure of the terms of the legal settlement with Petronas on the disputed 5% state sales tax on petroleum products.

See Chee How’s motion for the disclosure so that the legislature could “review, appraise and deliberate on the terms and concessions and to instruct the state government on its present and future conduct” was dismissed on the grounds that the issue was not referred to the Sarawak legislative assembly consultative committee first.

The bipartisan committee, in which See is a member, was to advise the state on special interests and rights, including oil and gas, in negotiations with Putrajaya on matters related to the Malaysia Agreement 1963 (MA63).

See’s private-member motion was addressing the joint statement by assistant minister of law, state-federal relations, Sharifah Hasidah Sayeed Aman Ghazali, and Petronas chairman, Ahmad Nizam Salleh, last Friday on the national petroleum company’s decision to end its legal fight over the SST and to pay in full the RM2 billion plus in arrears for the 2019 assessment.

However, See was disconcerted by the statement which states future petroleum products sales tax will be reduced and staggered based on future negotiations.

This would have a detrimental and dire financial consequence for the state, he said.

The former PKR member, now an independent, said the concession “to expressly accept that all previous agreements between the two parties made under the Petroleum Development Act 1974 (PDA74) are still valid and enforceable” and that Petronas is still recognised as having full ownership and control over national oil and gas development, in line with the federal constitution, are unacceptable as they “are concessions made in contravention of the desires, demands, decision and resolution of this august house and those of the Sarawakians”.

“It’s terrible,” See told The Malaysian Insight.

He said the government did not seek the opinion of the committee on terms of the settlement.

The state is conceding PDA74 is legally valid and Petronas having full ownership and control over national oil and gas development, he said.

“That is a treacherous concession and a betrayal of the people of Sarawak.”

Chief Minister Abang Johari Openg on March 8, 2018, declared that the PDA was null and void as it was ultra vires of Article 4 of the constitution. – May 11, 2020.


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