PETRONAS CHEATING SABAH?

By : SAPP MEDIA

THE government is urged to review the Petroleum Development Act 1974 so that Sabah and Sarawak can maximize benefits from oil and gas exploration, exploitation and downstream industries in Malaysia with greater transparency, according to Datuk Chua Soon Bui, member of parliament for Tawau who said this in her adjournment speech during parliament.

However, it is sad that the Deputy Minister in the Prime Minister’s Department, Dato’ Devamany Krishnasamy’s response that the government does not plan to amend the Petroleum Development Act 1974 (ACT 144) claiming that it is sufficient for PETRONAS to play its efficient role following its development and current circumstances.

Chua, who is also Vice President of Sabah Progressive Party (SAPP) said the Act is already 37 years old and it is high time to review to make way for transparency, accountability and credibility.

“The recent outcry by the Sabah Oil/Gas Contractors Association that most contracts were not directly awarded to Sabah companies is indicative of marginalization. The allegation that though Sabah-based registered companies were awarded the major contracts but the Sabahan contractors are not benefiting which be seriously investigated,” Chua contended.

“Development of oil and gas did not and has not benefited Sabah and its people over the past 37 years, which has resulted in Sabah being the poorest state in Malaysia.

“Even the two Ministers and a Deputy Minister from Sabah also felt the need for a review on the ACT. It is a collective view that is high time that the people in Sabah and Sarawak to be given more liberty and rights on how the cash payment 5% was given to the states respectively based on our productions, production costs etc.

“The review and amendment of the ACT should give absolute rights, ownership and privileges to Sabah and Sarawak state governments rather than with exclusively rights to PETRONAS at the moment. Amendment should also give liberty to the state government to negotiate and participate under the ACT especially on the development of downstream productions and also to cater for Sabah own Oil/Gas industry players.

“Although the National Petroleum Advisory Council was established, none of the appointed council members are from Sabah. This is marginalization of our rights and roles, lop-sided deals and monopolization at work by the federal government.

Chua would continue to bring the matter up with the hope that other Sabah MPs especially the Ministers and deputy Ministries at the Federal cabinet, to support for a ‘Private Member Bill’ and also to submit the relevant amendments to the Law Minister for its review and approval.

“Datuk Eric Majimbun and I would continue to pursue on the amendment so the Sabah state government would be given more power, rights, privileges with respect to Petroleum exploration, exploitation from our shores, down streams activities and development related to Oil/Gas industries,” she said.