NAJIB MUST UNDO FATHER'S INJUSTICE

“PM Najib must undo his late father’s greatest injustice against Sabah and reverse the vesting of Sabah’s oil and gas resources back to Sabah from Petronas” said Datuk Dr. Jeffrey Kitingan, Chairman of STAR Sabah at a press conference regarding the vesting of Sabah’s oil and gas resources by Tun Abdul Razak to Petronas in 1975.

Tun Abdul Razak, the then Prime Minister of Malaysia, had on 26 March 1975 signed away Sabah’s oil and gas resources to Petronas by executing the Vesting Order under Section 2(2) of the Petroleum Development Act, 1974 and granted in perpetuity and conveyed to and vested in Petronas the ownership in and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether lying onshore or offshore of Malaysia.  The grant, conveyance and vesting was to be irrevocable and shall enure for the benefit of Petronas and its successor.

 “The real issue is not whether the then Prime Minister had the authority to sign away Sabah’s oil and gas resources to Petronas but why should he signed away Sabah’s oil and gas without consultation  with or approval from Sabah when the oil and gas belonged to Sabah?” asked Dr. Jeffrey.

Under Section 24(1) of the Land Ordinance (Sabah Cap. 68), petroleum oil and gas in Sabah are, and are deemed always to have been reserved to the State Government, together with the right to enter lands and to search for, win, carry away and dispose of the same.  

Under Section 24(2) the Minister (in charge of such resources) is authorized to grant licences to search for, win, carry away and dispose of the petroleum oil and gas and to grant leases of the same.  Under the same section, the State is also entitled to impose payment of royalties on the petroleum oil and gas produced.  Further, Land and Natural Resources comes directly under the State List under the IG C Report and the Federal Constitution.

This action by Tun Razak may well be unconstitutional?  How can the Prime Minister give away something that does not belong to him as Prime Minister?”

By signing away Sabah’s oil and gas to Petronas, Tun Razak have committed the greatest injustice to Sabah.

It is only right that PM Najib undo the injustice by undoing the vesting and getting Petronas to reverse the vesting and restore ownership of Sabah’s oil and gas to Sabah.

It is never a better time for PM Najib to show his sincerity in resolving Sabah’s oil issue by giving back the oil and gas resources to Sabah which will also by a stroke of the pen wipe out Sabah’s poverty problems.

It is also the time for the Chief Minister of Sabah to show that he is truly a Sabahan at heart by not only seeking a review of the “oil royalties” but to ask the federal government to give back the oil and gas resources to Sabah since he has said that the current state-federal government relationship is very good.                                                                                                                                                                                                 

At the same time, it will show that all the talk of reviewing the oil royalties is sincere and genuine and not just mere election gimmick to hoodwink the voters in Sabah in the coming general elections.

What say you, PM Najib and CM Musa?

Dr. Dripin Anak Sakoi, the President of STAR, added that what is the position for Sabah is also applicable to Sarawak and asked the PM Najib to also restore Sarawak’s oil and gas to Sarawak.

“Sarawak’s contribution to Petronas for 2012 is expected to be about RM28.69 billion, which is more than double of Sabah’s contribution of RMRM14.734 billion estimated for 2012.  The reversion of the oil revenue to Sarawak and Sabah respectively will propel and provide a quantum leap for the development of Sabah and Sabah” added Dr. Dripin.  

Dr. Jeffrey added that the quantum leap development of Sabah and Sarawak will contribute a better and higher overall growth to Malaysia.

On the issue of contribution to Petronas and the federal government, Dr. Jeffrey opined that after the reversion of the oil and gas resources to Sabah and Sarawak, both States can still agree to a contribution of say 20%-30% of the oil revenue to them.   This contribution will also add to the overall growth of Malaysia.

Dr. Jeffrey further explained that in the Oil Agreement signed by Datuk Harris Salleh on 14 June 1976, the current 5% is a cash payment payable by Petronas under Section 4 of the Petroleum Development Act, 1974 in return for the ownership and the rights, powers, liberties and privileges of the oil and gas resources vested to Petronas by the State and is not royalties at all. 

In fact, under Clause 4 of the 1976 Oil Agreement, the State government was asked to agree to waive or reject all rights to royalties to the oil and gas resources.

At the Press Conference, the videos of the speeches of Tengku Razaleigh Hamzah was played to show the explanations on the imposition of royalties by the state and federal governments as well as on Tengku Razaleigh being asked to leave the ill-fated airplane before takeover from Labuan.

“The Sabah and Sarawak leaders must ensure that the rights and interests of Sabah and Sarawak come first” advised Dr. Jeffrey and Dr. Dripin.  

“Given the importance of Sabah and Sarawak to the position and frailty of the current BN regime, the State governments of Sabah and Sarawak should take full opportunity to secure the future of their fellow Sabahans and Sarawakians by seeking the restoration of the oil and gas rights to Sabah and Sarawak respectively” added Dr. Jeffrey.

And, if the federal government does not agree to revert the oil and gas resources to Sabah and Sarawak, the State governments should just change the federal government or at least file court proceedings to nullify the Vesting Order signed by Tun Razak and the Oil Agreements signed by the respective Chief Ministers of Sabah and Sarawak.