Kota Kinabalu: Upko called for the 1976 Petronas Agreement to be reviewed if the deal was not discussed or approved by the Sabah Cabinet.
The “1976 PDA” refers to the historical petroleum vesting agreements signed between Petronas and East Malaysian state governments — specifically Sabah and Sarawak — following the federal Petroleum Development Act 1974 (PDA), which granted Petronas ownership and exclusive control over the states’ oil and gas resources in exchange for a 5pc cash royalty.
Upko President Datuk Ewon Benedick said the party took a serious view of the revelation by former Chief Minister Tan Sri Joseph Pairing Kitingan in June that the Agreement, signed in 1976, was not tabled or discussed at the State Cabinet.
He said another former Chief Minister Tan Sri Harris Salleh, who acknowledged Pairin’s statement, gave an indication that oil and gas are under federal jurisdiction and Parliament that had passed the Petroleum Development Act 1974, and thus suggested there was no need for the matter to be discussed by the Sabah Cabinet.
“Upko and I strongly disagree with such statement and we reject the argument (by Harris) on the crucial matter as our party’s stand is that any matter that has a major impact to Sabah must obtain the approval and consent of the Sabah Government.
“If it is true that the Petronas Agreement was not discussed or did not receive the approval of the Sabah Government, then Upko demands that the Petronas Agreement be reviewed,” Ewon told reporters after delivering his policy speech at the 17th Upko Triennial Delegates Conference, Monday.
Ewon said the party would propose a motion during the conference that the Federal Government must obtain consent of the State Government or the Sabah Governor before any proposed law is tabled in the Parliament, especially those that pose a major impact to Sabah.
On Sabah’s constitutional entitlement to 40 per cent of the net revenue collected by the Federal Government from the State, Ewon, who is also Deputy Chief Minister III, said Upko wanted the full entitlement implemented.
“The interim payment is only a temporary measure. It should not continue indefinitely. Interim means temporary,” he said.
Ewon also dismissed conflicts or wars in other countries as a justification for delaying the full 40 per cent payment, saying Sabahans and businesses operating in the State continued to pay taxes while revenue continued to be collected.
He proposed that the Federal Government consider a mechanism similar to one used in the early 1960s when Singapore was still part of Malaysia.
“Under the arrangement, 40 per cent of federal revenue collected in Sabah would be retained in the State and channelled directly to the Sabah Government, while the remaining 60 per cent would go into the Federal Government’s account.
“The terms of the mechanism can be discussed. If Singapore was able to do this when it was still part of the Federation of Malaysia, I do not see why it would be difficult to implement,” he said.
Ewon said the matter would be debated by Upko delegates, and if endorsed, he would bring the mandate to the Chief Minister and Gabungan Rakyat Sabah (GRS) Chairman Datuk Seri Hajiji Noor and the Sabah Government.
During the Triennial Conference, he said six main motions would be tabled.
“The first concerns amendments to the party constitution, to improve governance and strengthen Upko’s institutions, while the second concerns the redelineation of electoral constituencies and the third to demand the full Implementation of the Malaysia Agreement 1963 (MA63), as well as to Safeguard Sabah’s Rights and Powers and Uphold the Sabah Constitution.
“The fourth motion is to Strengthen Governance under the Current Government through the Sabah First Approach, and the fifth motion is to strengthen the Sabah Native Customary Land Management Programme through Special Allocations and a Sabah Land Development Fund.
“The last and sixth motion is on the Development of New, Green and Sustainable Energy Resources and Sabah’s Energy Transition Efforts to ensure a Sustainable Electricity Supply and Competitive Energy Costs,” he said.
