Kitingan, president of the local STAR party, suggested Sept 1 or Jan 1 as the date by which oil royalty should be paid, and urged Parti Warisan Sabah, allies of Pakatan Harapan, to push for a firm date.
However, an activist for states’ rights has questioned whether the federal government would pay royalties or a share of the profits earned by national oil company Petronas.
Zainnal Ajamain, whose interest is rights under the Malaysia Agreement (MA63) raised his concern over a remark by Prime Minister Mahathir Mohamad that the 20% would be based on profits.
“If it is based on profits, then it’s not royalties. Royalties mean we are the owner of our resources, which is clear and it reflects the value of our resources. If it’s profits, that’s cash payments and that goes against Pakatan Harapan’s promise of 20% oil royalty.”
Kitingan’s suggestion of a deadline had been raised in the Dewan Rakyat today by Siti Zailah Mohd Yusoff of PAS, the MP for Rantau Panjang, Kelantan. However, Prime Minister Dr Mahathir Mohamad did not give a definite response.
Kitingan, who is MP for Keningau, said setting a deadline would be important for the financial planning of oil-producing states as they would know when to expect the money to start flowing in, he said
He told FMT that Cabinet members from Warisan should raise the issue of a move by Petronas to seek exclusive ownership over all oil and gas resources in the country, including Sabah and Sarawak.
When contacted, Warisan deputy president and federal minister Darell Leiking said Warisan would seek further clarification from the PH-led government.