DAP rep links Petros bosses’ contracts with Sarawak’s failure to tax Petronas

DAP rep links Petros bosses’ contracts with Sarawak’s failure to tax Petronas

DAP's Violet Yong accuses Petros board members of vested interests.

The Sarawak government wants to impose a 5% sales tax on Petronas. (AFP pic)
KUCHING:
A DAP assemblyman has alleged that the state government’s failed negotiation over the 5% sales tax on petroleum products was due to Petroleum Sarawak Bhd (Petros) board members having a vested interest in Petronas.

Violet Yong (PH-Pending) claimed that some of the “top shots” in Petros were “dependent” on Petronas for projects and contracts.

Violet Yong

She cited as example Petros chairman Hamid Bugo, who is also the senior independent non-executive director of Sapura Energy Bhd.

She said the company’s subsidiary, Sapura Offshore Sdn Bhd, had been awarded major contracts related to the pan Malaysia transportation and installation of offshore facilities project for Petronas Carigali Sdn Bhd and Sarawak Shell Bhd.

It was earlier reported that the Sarawak government plans to take legal action against Petronas for not paying the 5% tax on petroleum products it is bound to legally pay to the state after the failure of negotiations.

Yong also said Petros board member Mohd Medan Abdullah was also the director of crane services provider Handal Energy Bhd, also a recipient of a Petronas Carigali contract.

“On March 1 last year, Petronas Carigali Sdn Bhd awarded Handal Energy Bhd’s subsidiary company an umbrella contract to provide drilling hydraulic workover units for a duration of three years with the condition that the company obtain and maintain a valid licence with Petronas.

“Then in June this year, the company (Handal Energy Bhd) also bagged a RM360 million contract from Petronas Carigali Sdn Bhd to supply water injection modules for a seven-year contract period,” said Yong.

She said the company’s joint venture partner was Borneo Seaoffshore Engineering Sdn Bhd, which was associated with the chief minister’s son, Abang Abdillah Izzarim Abdul Rahman Zohari, who is executive director of Borneo SeaOffshore.

“Besides being linked to the chief minister’s son, Handal Energy Bhd is also linked to Jacqueline Fong, who is the daughter of Sarawak legal counsel JC Fong, whom Sarawakians rely on to take on Petronas.

“As such, I am not sure what the chief minister expects from his Petros’ board members and legal counsel.

“No wonder there is so much thunder but no rain from the chief minister’s negotiations with Petronas until today even though the deadline of Oct 31 for Petronas to pay up the 5% sales tax is over,” she said, adding that Sarawakians were disappointed over the issue.

Later, Sarawak speaker Mohamad Asfia Awang Nassar ordered the parts of the speech which “cast aspersions” on the character of the chief minister, his son as well as the state legal counsel and his daughter be expunged from the Hansard.

He said Fong and his daughter were not present in the House to defend themselves and Yong’s statement was based on hearsay as she was not involved in the projects mentioned earlier.

However, Yong said she was merely stating the facts as the information with regard to their involvement with Petronas was clearly listed in the Companies Commission of Malaysia’s (SSM) report, Bursa Malaysia and the companies’ shareholders information.

Describing the speaker’s act as “unfair”, she said the chief minister could come forward to defend himself to provide a “clearer picture” in the state assembly.

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