Sumber :
Aliran

Media Statement

The decision to divert Petronas' royalty payments away from the Terengganu state government so that the federal government can channel the money directly to Terengganu is source for much concern.

The government must come clean. Is the Petronas payment a royalty in accordance with the Petroleum Development Act 1975, which applies not only to Terengganu but Sabah and Sarawak as well? Or is it, as Dr Mahathir claims, a "special payment" to Terengganu as the poorest state in the past?

Now he says that Terengganu is to be treated differently from Sabah and Sarawak because the oil wells offshore from Terengganu are located outside the state's territorial waters. Is he implying that those oil wells are located in international waters?

On 29 June 2000, the Petronas CEO said the firm would continue paying 5 per cent oil royalty on offshore oil and gas to Terengganu based on its agreement in 1975 and estimated that the royalty for Terengganu this year would amount to RM810 million.

How is it possible to pay royalties for 20-odd years under an agreement based on an Act of Parliament only to find that suddenly they are to be considered as "special payments" granted on compassionate grounds?

By reneging on this agreement, what kind of signal are we sending to Malaysians, the business community, and foreign investors? Are agreements in Malaysia binding or are they subject to the whims of political leaders?

The move to change the royalties to "special payments" is vindictive and smacks of victimisation after the people of Terengganu voted out the Barisan Nasional state administration in last November's general election. We fear that there appears to be a pattern to this sheer disregard of past principles and practices, binding agreements and even the rule of law.

Wake up, Malaysia!

Executive Committee
8 September 2000