KUALA LUMPUR: Former Petronas chairman Tengku Razaleigh Hamzah continues to insist that the national oil corporation must pay oil royalties to the relevant state governments.
He called on the new Petronas CEO to conduct business according to the law, not the directive of politicians.
Petronas recently announced the appointment of Datuk Shamsul Azhar Abbas as its president and chief executive officer.
“In my opinion, I don’t think they (Petronas) should follow the directions of politicians. They must work in accordance with the law.
“If they find the direction is ill-advised, then they should advise the politicians accordingly so that they will not be forced to do things which are contrary to the provisions of the law and the agreement,” he told reporters at his house here Friday.
He suggested an advisory council be established to advise the Prime Minister and monitor Petronas’ performance.
The Gua Musang MP maintained his stand that state governments were entitled to a 5% royalty for petroleum extracted off their waters -– as there was no provision in law for the disbursement of wang ehsan, a goodwill payment that the Federal Government insisted states such as Kelantan was only qualified for.
Waving a copy of the Petroleum Development Act 1974, he quoted Section 4 of the Act: “In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.”
On calls by certain quarters in Umno for him to step down as MP, the Umno veteran leader said the party might not be able to retain the seat if he did so, and there was the possibility others might follow in stepping down.
On allegations that he had recently given a speech at a gathering organised by the Opposition in Kelantan, Tengku Razaleigh clarified that he had spoken at an event initiated only by non-governmental organisations (NGOs).
“I was invited by a group of NGOs from Kelantan and Terengganu – about 52 of them. I went on the condition of speaking alone,” he said.
He added that everyone was invited to the gathering regardless of their political affiliation.
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