Petronas, Sabah gov't sued on oil royalty deal
Six businessmen have filed a suit against the Sabah government and Petroleum Nasional Bhd (Petronas), citing the federal government's taking of all the oil extracted in the state as illegal as this goes against the Malaysia Agreement 1963 and the Federal Constitution.
The suit was filed in the High Court in Kota Kinabalu earlier this week by Zainnal Ajamin, Lahirul Latigu, Mohd Julpikar Ab Mijan, Joseph Wilfred, Duli @ Dullie Mari and Michael Peter Govind.
The group, calling themselves 'R for Sabah' (or Royalty for Sabah) claim that the Petroleum Agreement signed in 1976 by then Sabah chief minister Harris Salleh and Petronas is also ultra vires (beyond the powers) of the Federal Constitution.
The suit was filed by Sabah-based law firm Marcel Jude Joseph & Co.
The plaintiffs claim that the present federal government and Pakatan Rakyat have no right to determine the quantum of Sabah's oil royalty payment as this for the state government to determine.
As far as petrol justice is concerned, the six argue, it is unenforceable as it contravenes Article 13 (2) of the Federal Constitution that states no law shall provide for compulsory acquisition or the use of property without compensation.
The suit was filed in the High Court in Kota Kinabalu earlier this week by Zainnal Ajamin, Lahirul Latigu, Mohd Julpikar Ab Mijan, Joseph Wilfred, Duli @ Dullie Mari and Michael Peter Govind.
The group, calling themselves 'R for Sabah' (or Royalty for Sabah) claim that the Petroleum Agreement signed in 1976 by then Sabah chief minister Harris Salleh and Petronas is also ultra vires (beyond the powers) of the Federal Constitution.The suit was filed by Sabah-based law firm Marcel Jude Joseph & Co.
The plaintiffs claim that the present federal government and Pakatan Rakyat have no right to determine the quantum of Sabah's oil royalty payment as this for the state government to determine.
As far as petrol justice is concerned, the six argue, it is unenforceable as it contravenes Article 13 (2) of the Federal Constitution that states no law shall provide for compulsory acquisition or the use of property without compensation.
'All the oil belongs to Sabahans'
They claimed the declaration had failed to recognise that Sabah is entitled to 100 percent of the proceeds and income from the extraction of petroleum, offshore as well as onshore of Sabah waters
They want the High Court to declare the Petroleum Agreement and the Petroleum Development Act signed between the Sabah government and Petronas null and void and ultra vires the federal constitution.
They also want the court to assess the damages, costs and statutory interests.
Zainnal Ajamin, who is leading the group, said both sides of the political divide have of late been promising and assuring the people of Sabah that petroleum issues are high on their agendas.
He said Sabah Chief Minister Musa Aman announced recently that the state government planned to renegotiate the Petroleum Agreement it signed with Petronas in 1976, under which the state government is given five percent of the value of oil found onshore and offshore Sabah, with 95 percent going to the federal government.
Several more suits to be filed nationwide
"At the same time opposition parties, basically PKR, are promising the Sabah people that if they form the government they will increase the amount to 20 percent of the value of oil found in Sabah.
They claimed the declaration had failed to recognise that Sabah is entitled to 100 percent of the proceeds and income from the extraction of petroleum, offshore as well as onshore of Sabah waters
They want the High Court to declare the Petroleum Agreement and the Petroleum Development Act signed between the Sabah government and Petronas null and void and ultra vires the federal constitution.
They also want the court to assess the damages, costs and statutory interests.
Zainnal Ajamin, who is leading the group, said both sides of the political divide have of late been promising and assuring the people of Sabah that petroleum issues are high on their agendas.
He said Sabah Chief Minister Musa Aman announced recently that the state government planned to renegotiate the Petroleum Agreement it signed with Petronas in 1976, under which the state government is given five percent of the value of oil found onshore and offshore Sabah, with 95 percent going to the federal government.
Several more suits to be filed nationwide
"At the same time opposition parties, basically PKR, are promising the Sabah people that if they form the government they will increase the amount to 20 percent of the value of oil found in Sabah.
"The local opposition parties are asserting that they will accept a similar quantum."
Zainnal Ajamin and his group said neither the state government nor the opposition have any right to determine the quantum of oil due to Sabah.
"100 percent of the oil belongs to the people of Sabah. It should be given back to them and let the impending state government decide as to how much should be given to the federal government, whichever it may be."
Zainnal Ajamin said the legal action against Petronas and its agents for denying oil-producing states from enjoying their God-given wealth could be expected to be carried out nationwide.
"Similar suits will be filed in Kelantan, Terengganu and Sarawak," he said.
Zainnal Ajamin and his group will also attend an oil rights group event at Dataran Kemerdekaan in Shah Alam, Selangor, on Oct 2, after which they will take part in a convoy to the Palace of Justice in Putrajaya.
Zainnal Ajamin and his group said neither the state government nor the opposition have any right to determine the quantum of oil due to Sabah.
"100 percent of the oil belongs to the people of Sabah. It should be given back to them and let the impending state government decide as to how much should be given to the federal government, whichever it may be."
Zainnal Ajamin said the legal action against Petronas and its agents for denying oil-producing states from enjoying their God-given wealth could be expected to be carried out nationwide.
"Similar suits will be filed in Kelantan, Terengganu and Sarawak," he said.
Zainnal Ajamin and his group will also attend an oil rights group event at Dataran Kemerdekaan in Shah Alam, Selangor, on Oct 2, after which they will take part in a convoy to the Palace of Justice in Putrajaya.
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