Sunday 12 April 2015

Don't be contented with RM2.1b,but also go for 20% royalties, Chong asks CM

By Simon Peter
KUCHING, April 12, 2015. - Sarawak State Assembly Opposition leader Chong Chieng Jen has told Chief Minister Tan Sri Adenan Satem not to be contented with the so-called intended awards of RM2.1 billion worth of contracts by PETRONAS to Sarawak contractors.

He alleged it is Adenan's attempt to divert the attention of the people from the initial demand for 20% oil and gas royalties for Sarawak.


Chong Chieng Jen
At last year's sitting, the State Legislative Assembly unanimously passed a resolution demanding for an increase of the royalties from the present 5% to 20%. 

Chong stressed in a statement today:"Till this day, almost a year has passed and yet it seems that the demand has hit brick-wall."

Despite the failure on the part of Sarawak government to execute the resolution, Chong suggested that Adenan seems to be happy and contented with the award of contracts worth RM2.1 billion to Sarawak contractors.

He said the 20% oil and gas royalties are a far cry from the RM2.1 billion worth of contracts awarded in many ways.

According to the 2015 Sarawak State Budget’s estimates, the 5% oil and gas royalties will give Sarawak a revenue of RM1.83 billion while the 20%  will give an additional RM5.49 billion. 

"This is 2.5 times more than the RM2.1 billion," Chong, who is also the State Assemblyman for Kota Sentosa, added.
Another, he said,  contracts worth RM2.1 billion to Sarawak contractors” means that Sarawak contractors have to come out with RM2.1 billion worth of material and work to earn that RM2.1 billion. 

"This is totally different from the outright RM5.49 billion cash payment as royalties," he said.

Chong also said out of the RM2.1 billion worth of contract, he is sure that a very substantial portion will be paid to import materials from suppliers who are not Sarawakians or to engage consultants who are not Sarawakians. 
Tan Sri Adenan Satem
"Therefore, not the whole of the RM2.1 billion will be circulating in the Sarawak economy," he posed.

He also said contracts worth RM2.1 billion will benefits the local contractors who are awarded with the contracts, but Its impact on the general public in Sarawak is limited. 

"On the other hand, the RM5.49 billion royalties payment can be used by the government to benefit all Sarawakians, especially the poor."

"Even if all the contracts worth RM2.1 billion were to be awarded this year, they will definitely take more than a year to complete all. 

"Therefore, it will not be RM2.1 billion worth of contract a year. The amount will be spread over a few years.  On the other hand, if the 20% royalties were to be given to Sarawak, it would mean an additional RM5.49 billion a year.

Given these points, Chong said Adenan should not try to use the RM2.1 billion worth of contracts to cover-up his failure to obtain 20% royalties from Putrajaya.

"Such failure to obtain the royalties shows the disrespect on the part of the Federal Government towards Sarawak’s rights. 

"It further proves that Sarawak Barisan Nasional is just an insignificant appendage to the Federal Barisan Nasional," he accused, adding that the Sarawak BN cannot make any important decision without the nod from Putrajaya.

Chong pledged he will submit suggestions at the coming State Assembly's sitting for the Sarawak government to compel Putrajaya to give in to the demand of 20% oil and gas royalties.

He hoped that the State government have the political will and resolve that it is not a subordinate or a colony to the Federal government.


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