KUCHING: Prime Minister Tun Dr Mahathir Mohamad had said the Pakatan Harapan (PH) federal government is now in financial straits and badly in debt, but that is not exactly Sabah and Sarawak’s concern, said political analyst Datuk Peter Minos.
Minos said tricking Sabah and Sarawak to buy one or two per cent of Petronas’ share will not solve federal government’s financial burdens.
“It may put Sabah and Sarawak into a financial logjam if the two states buy Petronas’ share even of one per cent,” he said, adding that the proposal may be seen and interpreted as the federal government’s way to avoid paying the 20 per cent royalty promised to Sabah and Sarawak.
Regardless, Minos pointed out that the promise and pledge, made openly and publicly to Sabah and Sarawak, still stand and if not met, will make the PH government seem distrustful.
Minos said after reading and talking in the last two days about Mahathir’s proposal to sell some of Petronas’ shares to Sabah and Sarawak, he gathered that one per cent of Petronas’ share is estimated to be more than RM8 billion.
He said Sabah and Sarawak cannot afford that amount, saying, “It is just not financially safe to buy because if Sabah and Sarawak buy, with one per cent share, they will have very little or even no say in Petronas’ board and management. So, what is the point?”
Minos added that the basic and fundamental issue that must be settled is still the legal ownership of oil and gas found in Sabah and Sarawak.
“What about the 20 per cent royalty pledged and promised to Sabah and Sarawak by the PH government but not yet met and the five per cent sales tax owed to Sarawak and now in the courts?” he asked, summarising that it is still pre-mature to do anything on the matter.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said there are no details or terms and conditions yet on Mahathir’s proposal and that the state government will just wait before responding.
