KOTA KINABALU: The 20% oil royalty is a straightforward issue that's easily understood and should rightfully be given to the people of Sabah.
However, opposition party SAPP said the government including the ruling Parti Warisan Sabah seems to be making this a difficult and "complicated" issue.
Its president Datuk Yong Teck Lee said on behalf of the people, he just wants to know how and when Warisan will fulfil its promise to increase the 5% oil royalty to 20% for Sabah.
“There is no need for a committee of educated ministers to count 20% from 5%. A calculator will tell you that 20% is four times of 5%,” he said in a statement Sunday (Sept 16).
“The mechanism and formula to count the 5% or 20% pursuant to the Petroleum Development Act 1974 are already in place and has been in use for 40 years,” Yong said.
He said instead of fulfilling the promise to return 20% royalty to Sabah, the government has come up with various ways to delay this.
Yong said Sabahans are now made to wait for a committee to submit its report in six months to a federal cabinet committee which will then submit it to the federal cabinet.
“We will also have to wait to hear what Kelantan, Terengganu and Sarawak have to say and see how we must comply with the Petroleum Development Act 1974, which started the exploitation of our oil resources in the first place,” he said.
The former chief minister said he suspects that this Pakatan Harapan promise made in the run-up to GE14 will not be fulfilled.
“Perhaps it is easier said than done. That is why Prime Minister Tun Dr. Mahathir Mohamad agreed on a 20% profit because 20% straight up royalty is not economically feasible," he said.
Dr Mahathir in a press conference on July 20 announced that the 20% oil royalty will be based on profit made by Petronas in the [state’s] area.
"What we collect in Terengganu will not be paid to Sarawak or Sabah,” he reportedly said.
However, the Sabah state government is reportedly firm on its stand to claim 20% oil royalty based on gross profit and not net profit, said Chief Minister Datuk Seri Mohd Shafie Apdal.
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