See questions Najib's sincerity

KUCHING, July 13, 2014:- Sarawak Parti Keadilan Rakyat (PKR) has asked Sarawak and Sabah Barisan Nasional component parties to review their positions in the Umno-led national front coalition in the light of a statement made by Prime Minister Najib Razak on their demands for an increase in oil and gas royalties.

See Chee How (centre): Sarawak and Sabah BN parties should review their positions in Umno-led federal BN.

Sarawak had tabled a motion in the State Legislative Assembly in May this year asking that the royalties be increased from 5% to 20% while Sabah said it would also follow suit.

Sarawak PKR vice chairman See Chee How, responding to Najib's statement, told the BN leaders in the two Borneo states to decide whether they should continue to hold the allegiance to the UMNO-led federal BN.

He also asked whether the two Borneo states should continue to remain as fixed deposit states by delivering the number of elected seats to BN or to  perform their duty of fidelity to the electorate who have wished for more and better development in their states, to bring them on par with Malaya.

"The statement expressed by Najib Razak last night is contemptuous and malicious.

"I challenge him to reveal the allocations granted and received by Sabah and Sarawak, through the federal ministries and agencies.

"To say that such allocations, together with development and operation expenditure, amount to three times the 20% oil royalty sought by the states is grossly unfair and malicious.

"The allocation for development and operation expenditure in the  two Borneo states should never be included in the equation.

"However, the revelation by the prime minister is his admission of a distressing fact that both the Borneo states are receiving pittance from the federal government.

"Indeed, the 5% oil and gas royalties paid to Sarawak, termed as “compensation in lieu of our oil and gas rights”, amounts to only RM1.67 billion for 2013. This is only 2.275% of the total sum of RM73.4 billion contributed by Petronas to the federal government.

"In view of the hefty sum of contribution paid by Petronas to the federal government, Petronas had suggested that the federal government increased its allocation to Sarawak for basic amenities, infrastructural and other needed development, to pacify the Sarawak government.

"It is unfortunate that Najib had shown no sincerity and commitment towards the two states in terms of additional federal allocations, but chose instead to push the obligation back to Petronas asking that Petronas increased its corporate social responsibility (CSR) contributions to these oil producing states.

"We must reiterate that what the Borneo states are demanding - the 20% oil and gas royalties, the state’s ownership of equity in Petronas, our participation in the production sharing contracts and the involvement in downstream and operation contracts - are our rightful entitlements as oil producing states.

"The prime minister must really show his sincerity and commitments towards our  states by looking at the demand rationally, not merely to satisfy them with hand-outs or CSR projects," See, who is also Batu Lintang state assemblyman, said.

Najib, speaking at the breaking of fast in Kota Kinabalu Saturday night, had said that the federal government was truly committed to increasing contributions to Sabah through methods deemed "suitable" without affecting the development of the oil industry in the state.

As an immediate measure, Najib announced that Petronas had agreed to increase it Corporate Social Responsibility (CSR) contributions for Sabah particularly in the field of education, including provision of facilities for rural schools, training, technical expertise and scholarships for university students.

"If we want continued success, we must have the capability. The question is not getting government contracts solely. It's not about giving contracts, it's about giving value. In the competitive economy today, creative value will determine our continued success. We will increase the capacity of the people of Sabah," he said.

Najib said Sabah Chief Minister Musa Aman had never remained silent regarding the oil royalty issue for Sabah and that Musa had often asked him how Sabah could receive more from the development of the oil and gas industry in the state.

"So, if any matter arises from time to time, of course we can negotiate on it. Not necessarily we will set it aside, not necessarily we have to move a motion on it in the state assembly. On the royalty issue, the Sabah government is concerned about it. I can verify this," he said.

Najib said following the efforts by Musa (on the oil royalty issue), he had instructed Petronas' president to give a special briefing to the state government and federal ministers from Sabah on the issue, and as a result, all involved clearly understood the issue of increased revenue for the Sabah government.

"Believe me, we will do the best for Sabah. This is not political rhetoric, the fact of the matter is that if we add up the allocations received by Sabah through federal ministries and agencies together with development and operational expenditure, the amount is three times the 20 per cent oil royalty sought for the state by the opposition," he said.