No need for S’wak MA63 negotiating team to meet, says Minister

KUCHING: A state minister says it is unnecessary for the negotiating team appointed by the Sarawak Consultative Committee on the Malaysia Agreement 1963 (MA63) to meet and discuss the state’s oil and gas matters.

It was reported that on June 10, the committee had appointed a negotiating team headed by Sarawak Tourism, Arts and Culture Minister Abdul Karim Rahman Hamzah to participate in talks with Petronas and the federal government to facilitate the committee’s advice to the state legislative assembly.

Speaking to reporters, Karim said: “The committee is still there but there is no need for it to be pushing (things) because currently, everything is going fine.”

He said the state had members in the federal Cabinet, including senior minister Fadillah Yusof, and several matters concerning the state’s oil and gas matters had already been addressed at the federal level.

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“The payment (by Petronas for the sales tax on petroleum products) is forthcoming and Sarawak is getting about RM3 billion for 2019, including the interest and penalty,” he said.

“Before, things didn’t seem to be easy but now the prime minister and our chief minister have the same understanding. We are now able to get our 5% sales tax quite easily.

“I think this thing (the issue on sales tax) would not have dragged (until now) if there was nobody behind the scene trying to give directive to Petronas.”

In January last year, the Sarawak government imposed a 5% sales tax on Petronas’ petroleum products under the state’s Sales Tax Ordinance 1998.

Petronas, however, refused to pay the tax, saying it was unconstitutional. This resulted in the state government taking legal action against it.

On March 13, the Kuching High Court ruled that Sabah and Sarawak had the right under the Federal Constitution to impose sales tax on petroleum products, dismissing Petronas’ bid to declare the Sarawak state sales tax null and void.

When news of the Petronas-Sarawak government agreement was reported, some groups and individuals criticised it.

Tanjung Batu assemblyman Chiew Chiu Sing, Bukit Assek assemblyman Irene Chang and Batu Lintang assemblyman See Chee How had earlier urged consultative committee chairman Mohamad Asfia Awang Nassar to call for a meeting to deliberate on the arrangement reached between the Sarawak government and Petronas.

According to them, the arrangement had proceeded without prior notice, deliberation or sanction of the MA63 consultative committee.

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On July 14, See tendered his resignation as a member of the MA63 consultative committee, saying that his decision was due to a lack of transparency in its negotiation with Petronas and the federal government for the settlement of the state sales tax owed to Sarawak.

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