By Adib Zalkapli, The Malaysian Insider
National oil firm Petronas could be unlawful as its founding law was approved before it signed agreements with all the states, law professor Datuk Dr Shad Saleem Faruqi said today.
He also explained that according to the constitution land belongs to the states, which complicates the provision in the agreement surrendering control of petroleum found onshore under the Petroleum Development Act 1974.
“I think there are some aspects of the Petronas Act that is unconstitutional,” Shad told a forum on oil rights.
Under the agreements signed in the mid-1970s all state governments were promised cash payment or royalty of five per cent for petroleum extracted onshore or offshore in return for surrendering their control of petroleum resources to the national oil company.
Shad also pointed out that the Act was passed before all the states had signed the agreement.
“The constitution says when you take somebody’s property you have to pay adequate compensation,” said Shad.
Lawyer Tommy Thomas, who represented the Terengganu government in its demand for oil royalty, however said it would be a disaster if the Petroleum Development Act is declared unconstitutional.
“The first problem with that argument is Petronas becomes illegal,” said Thomas, adding that no party has brought the question to court.
“If the court rules PDA to be unconstitutional, I think it will be a tragedy,” he said.
Thomas also pointed out that all 13 states have agreed to the agreement.
“To me the PDA is a wonderful example of federalism,” he added.
Thomas is also currently advising the Kelantan state government to demand for oil royalty from Petronas.
written by temenggong, March 22, 2010 02:44:22
..the Act was passed before all the states had signed the agreement.
Good find! The Act was passed based on non existing agreements!
Whatever, the states can abrogate their agreement due to non compliance, there being no substantive consideration.
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written by Stupid me, March 21, 2010 21:46:50
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written by hunkeyboy, March 21, 2010 12:58:43
why not? and why not 10% .... inflasi lah.
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written by ibabonma, March 21, 2010 11:30:23
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written by Rainbowseahorse, March 21, 2010 09:19:18
...And then there is the question of the missing signatory (Singapore) to the formation of this Malaysia where no new documents were re-written and signed by the remaining states still in this Malaysia when Singapore withdrew or got kicked-out of the federation.
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written by eloofk, March 21, 2010 06:53:41
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written by my oumrie, March 21, 2010 06:34:10
The court will rule anything on the side of amno. To get REAL justice in this country, one must go the the International Halls of Justice. Justice here is haprak, as RPK may say. PTUI!
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You have been cheated for so many years, so you have to take advantage of any opportunity to get back what you rightfully deserve, and more. Don't continue to be stupid. Enough is enough!!