Stop dilly-dallying in fulfilling oil royalty promise: Yong

Kota Kinabalu: Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee (pic) said Parti Warisan Sabah should stop dilly-dallying in fulfilling its promise on the 20 per cent oil royalty increase for Sabah and its people.He said since the May 9 general election, the party has made many U-turns on its promises such as on the Kaiduan Dam, Sabah ICs and the 20 per cent oil royalty.

"Perhaps it is easier said than done. That is why Prime Minister Tun Dr Mahathir Mohamad agreed on a 20 per cent profit because 20 per cent straight up royalty is not economically feasible.

"Warisan seems to be playing to the public gallery because saying to give and being able to give are two different things. Sabahans are aware the growth in oil and gas is vital to our social and economic development.

"The issue of oil royalty has for a long time been a sore point for Sabah. However, simply promising a 20 per cent increase in oil royalty is not good enough. That is just lip service to create a momentary feel good factor," he said in a statement.

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Yong recalled Parti Warisan Sabah President Datuk Seri Shafie Apdal as promising that the party would demand the oil royalty due to Sabah increased from the current 5 per cent to 20 per cent if it won in the state election.

Warisan, he said, had described the present royalty rate as an injustice suffered by both Sabah and Sarawak, saying that the Borneon states had been deprived of what was rightfully theirs under the Malaysia Agreement 1963.

"What has become of that election promise on the 20 per cent oil royalty? My question is in view of what Federal Minister for Economic Affairs Datuk Azmin Ali revealed on Saturday that, after a two-hour discussion with Shafie, "Petronas might have to close down because Petronas cannot afford to pay 20 per cent oil royalty based on net profits," he said.

Instead, Yong lamented that Sabahans are now made to wait for a committee to submit its report in six months to a federal Cabinet committee, which in turn will submit it to the federal Cabinet.

"We will also have to wait to hear what Kelantan, Terengganu and Sarawak have to say. We will now see how we must comply with the Petroleum Development Act 1974, which started the exploitation of our oil resources in the first place.

"I would like to know how and when will Warisan fulfil its promise on the 20 per cent oil royalty for Sabah and its people.

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There is no need for a committee of educated Ministers to count 20 per cent from 5 per cent.

"A phone calculator will tell you that 20 per cent is four times of 5 per cent. The mechanism and formula to count the 5 per cent or 20 per cent pursuant to the Petroleum Development Act 1974 are already in place and have been in use for 40 years. 20 per cent royalty means four times whatever that Petronas has been paying Sabah based on production volumes and market prices. Even a kindergarten kid can count that," said Yong.

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