THE question of whether Petronas is going broke is not the issue, said Sarawak Deputy Chief Minister James Masing, following remarks made in Parliament today that Putrajaya cannot give in to states’ oil royalty demands.

He said Sarawakians now question the Pakatan Harapan government’s sincerity.

“Our rights are our rights! Whether Petronas becomes bankrupt is not the issue,” he said in a WhatsApp group discussing PH’s seeming flip-flop on a key election promise.

Economic Affairs Minister Mohamed Azmin Ali, in Parliament today, said Putrajaya is unable to give in to oil-producing states’ demands for the 20% oil royalty to be paid based on gross production instead of net profit.

He said it would spell the end of Petronas if the payment was set at 20% of gross value.

“Petronas took what is not theirs to take,” said Masing, reiterating Sarawak’s position that the Petroleum Development Act 1974 – which gives the national oil company monopoly over all oil and gas resources in the country, including in Sabah and Sarawak, and the development of the said resources – is not applicable to the state.

He said due to the “theft”, “Malaya is rich, Sarawak is poor”.

“Where is the justice?”

He suggested that Prime Minister Dr Mahathir Mohamad is reneging on the PH election pledge to increase oil royalty payments from 5% to 20% for personal reasons.

“His kids are involved in oil and gas. If Petronas collapses, all those involved will be affected.”

Masing said the Sarawak government has given Petronas until the end of next year “to work out an amicable deal with us” – seemingly referring to reports of a meeting between top-level Petronas executives and Chief Minister Abang Johari Openg after the company failed to get application for leave from the Federal Court.

Abang Johari told reporters in Kuching on Tuesday that “they had come to see me recently”, but declined to say when the meeting was held or what was discussed.

A DAP rep today warned the PH federal government that “people will reprimand us if we do not fulfil our election pledges”.

Padungan’s Wong King Wei said Sarawakians have high expectations of the promised 20% oil royalty, “and unless there is a justifiable reason, the fulfilment of the promise is not to be compromised”.

He said the promise “did not come to place without due consideration”, and that it had “undergone thorough discussions and debates”.

“It is a package of promises, in which 20% oil royalty is to be given to Sarawak, together with autonomous rights in education and health services.”

He said promises of additional oil royalty and 50% of taxes collected in the state will enable Sarawak to finance the expenditure of divested Education and Health Departments.

He added that estimates have shown that there will be a surplus.

He said the divestment will lift the burden of expenditure from the federal government, and a big chunk of revenue will be given to Sarawak.

“Azmin’s ministerial reply in Parliament today was merely about the effects of giving away 20% oil royalty without taking into account the devolution of power in education and health, which will take a huge expenditure away from the federal government.

“Thus, he feels that the federal government may face problems.”

Such a perception, said Wong, is wrong.

“The majority of people understand if some election pledges have to be postponed due to the country’s debt problem. Many are also accommodating if secondary policies are worked on first, due to this reason.

“We have to bear in mind that trustworthiness is one of the vital pillars of any government. Without it, we won’t be in power for long.” – July 25, 2018.