UPHOLD OIL JUSTICE FOR SABAH

DAP Sabah calls upon Sabahan to vote in Pakatan Rakyat to be the next Federal and State government in coming general election to uphold the oil justice for Sabah.

Its publicity secretary Chan Foong Hin said, DAP Sabah dismissed the statement by Petronas on last weekend which stated that the increase of oil royalty will reduce the Petronas’s profitability and economic viability of all current and future oil and gas projects under development.

Based on info gathered, the total asset or profit of Petronas is approximately RM500 billion. However, the increase of the oil royalty from 5 percent to 20 percent for all oil producing states, namely Sabah, Sarawak, Kelantan, Terengganu, is just a piece of cake for such big profitability company.

Chan added, there is no such thing that the increase of the oil royalty will harm or affect the profit earning of Petronas. In fact, instead of investing on those big projects like F-1 Circuit or cost 60 billion Pengerang refinery project which had been protested by local peoples and alleged that was linked to the cronies of BN, Petronas should return the revenue of such huge investments to the oil producing state.

He said, “Without us (the oil producing state), Petronas would not exist.” Furthermore, he emphasized the idea of oil justice. The oil and gas should belong to the oil producing state, but unfortunately the uneven wealth distribution had caused it's own rakyat survives under poverty line.

During preparation of Pakatan Rakyat Sabah Alternative Budget in which Chan also a committe member of it, from the previous years state budget, there was a kind of revenue to state government paid by Federal government compensation for the loss of revenue for import and excise duties on petroleum products.

This compensation started in year 2001 by the then CM Datuk Osu Sukam. According to 2001 budget speech, it was anticipated that the Federal government will make a payment of RM250 million in respect of this compensation. But according to last few years budget including 2012 budget, the compensation paid was only RM120 million. in short, Sabah loss RM130 million every year!

"Not only is the Sabah State government powerless in increasing the oil royalty, they cannot even get the Federal government to pay us Sabahan proper compensation from lost revenue of the lifting of the excise and import taxes for petroleum," Chan said.

Therefore, Pakatan Rakyat, in view of social justice, pledged to increase the oil royalty from 5 percent to 20 percent to the oil producing states in order to return the resources back to the people of the states.

The Pakatan Rakyat Sabah is going to unveil the state alternative budget on this Wednesday, 17/10. One of the highlight in the budget is the utilization of the extra oil money following oil royalty increment. "It is up to the rakyat to compare which state budget, whether from us or BN, is good for them. And we are confident that we can do better than BN", Chan concluded.