Chua off the mark on National Trust Fund

PKR vice-president Chua Jui Meng got it all wrong when he questioned the existence of the fund, according to Petronas sources.

KUALA LUMPUR: The National Trust Fund (NTF) has been in existence for some time as the fund was set up 24 years ago.

A source said PKR vice-president Chua Jui Meng got it all wrong when he questioned the existence of the fund.

Chua questioned the existence of such fund in a FMT comment piece, alleging that only the prime minister was privy to Petronas accounts.

Sources revealed that the NTF or also known as Kumpulan Wang Amanah Negara (KWAN) was established on Feb 19 , 1988, under the National Trust Fund Act 1988 (Act 339).

They said the Act was enacted by Yang di-Pertuan Agong on the advice and consent of Parliament.

They added that the NTF was established to ensure optimum utilisation of the depleting natural resources of the country with the view to providing a continuous source of revenue for the people.

“Bank Negara has been entrusted to manage and administer the NTF to ensure that it is properly managed and invested.

“Under the Act, contribution to the NTF is not only made by Petronas but also by any state in Malaysia which derives any form of royalty from exploitation of petroleum or other depleting resources,” the source said.

The sources said since the establishment of the NTF, Petronas has been the only contributor to the fund and until 2010, has been contributing RM100 million per annum .

The source said Petronas recently raised the bar and made a commitment to contribute until 2020 on a formula based on Weighted Average Realised Price of Oil.

“Based on this, Petronas contribution in 2011 [paid in March 2012] was RM1 billion.

“Information pertaining to the NTF has been made known via Petronas media releases and similar explanations have been given as response to a parliamentary question in June 2011,” the sources added.

On the claim that only the prime minister is privy to Petronas accounts and finances, Chua has again shown that he is ignorant of government procedures and access to information.

The source said as a company incorporated under the Companies Act 1965, Petronas is required to prepare its financial reports in accordance with the rules and regulations prescribed by the Companies Commission of Malaysia.

“These financial reports are audited by internationally accredited auditors and prepared based on global accounting standards.

“Petronas also publishes its financial reports annually and these reports are made available on its website and can be downloaded by members of the public.”

About the claim of giving away two oilfields to Brunei, for Chua’s and public’s information, the “two oilfields” referred to are in actual fact two exploration blocks which then were disputed between Malaysia and Brunei.

This matter has been resolved between the two countries in an exchange of letters, which include a mutually beneficial commercial arrangement.