These 6 businessmen are the real heroes of Sabah. I don't count myself as a hero in fact. We are all cowards and don't want to fight for our rights. How should we look at our leaders who have allowed our riches going out of Sabah so much that Sabah is the poorest in the world, not just in Malaysia. This is unimaginable.
http://www.dailyexpress.com.my/news.cfm?NewsID=82657
Bid to nullify the oil royalty deal
Published on: Wednesday, September 26, 2012
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Kota Kinabalu: Six Sabahan businessmen filed a suit at the High
Court here, Tuesday, seeking to declare the Petroleum Agreement between
the Sabah State Government and Petroliam Nasional Berhad (Petronas)
signed on June 14, 1976 ultra vires as well as null and void.
Lahirul Latigu (first plaintiff), Mohd Julpikar Ab Mijan (second
plaintiff), Zainal Ajamain (third plaintiff), Joseph Wilfred (fourth
plaintiff), Duli @ Dullie Mari @ Marie (fifth plaintiff) and Michael
Peter Govind @ Mike Govind (sixth plaintiff) named Petroliam Nasional
Berhad as the first defendant and the Sabah State Government as the
second defendant.
The businessmen were also seeking a declaration that the Petroleum
Development Act, in so far as it applies to the agreement dated June 14,
1976 between the first defendant and the second defendant is ultra
vires null and void.
They are claiming for damages to be assessed, cost plus statutory interest and other relief deemed fit by the High Court.
In their statement of claim, the plaintiffs said the agreement was null
and void and ultra vires to Article 74 of the Federal Constitution and
the Ninth Schedule of the Federal Constitution.
"Furthermore the said agreement on 14th day of June 1976 is
unenforceable by reason of the Petroleum Act 1974 being in contravention
of Article 13 of the Federal Constitution of Malaysia which states that
no law shall provide for compulsory acquisition or the use of property
without compensation," they said.
Thirdly, they said the agreement on June 14 June 1976 was executed by
the executive arm of the State Government of Sabah without approval and
consent of the State Legislative Assembly and is therefore ultra vires
null and void.
"Fourthly, the said agreement dated the 14th day of June 1976 is merely a
vesting deed and to date there is no agreement or contract between
Petronas and the Sabah State Government in regard to the sharing and
exploitation of the onshore and offshore resources of petroleum
belonging to the state of Sabah. In consequence thereof, the said
agreement is ultra vires null and void.
Fifthly, the plaintiffs said the vesting of petroleum resources of Sabah
under the said agreement dated 14th day of June 1976 by the Sabah State
Government into the hands Petronas by which is neither the executive or
legislative part of the Federal Government of Malaysia but merely a
company incorporated under the Company's Act 1965 is ultra vires null
and void.
The plaintiffs also said Pakatan Rakyat's pledge on oil justice that it
would raise to 20 per cent the oil royalty for Sabah and Sarawak once it
formed the Federal Government as stated in its recent Kuching
Declaration if brought into effect would be unlawful ultra vires null
and void against Article 74 of the Federal Constitution and the Ninth
Schedule of the Federal Constitution.
Under the Ninth Schedule of the Federal Constitution, the Federal have
powers except over permits and licenses under State rights, the Federal
Government has rights over development of mineral resources, mines,
mining, minerals and mineral ores, oils and oil-fields, petroleum
products, safety in mines and oilfields.
The Ninth Schedule also stated the following matters to fall in State
hands: "Land: Schedule 9 List II, Para 2(a). Under the interpretation
Acts, 1948 and 1967, Section 3, land includes "the surface of the
earthÉall substances thereinÉall vegetation and other natural
productsÉwhether on or below the surfaceÉand land covered by water".
"The territorial waters of Kelantan will come within the definition of
"land covered by water". Territorial waters are defined by section 4(2)
of the Emergency (Essential Powers) Ordinance No 7, 1969."
"In addition to the income from land, one notes that in Article 110(3a)
there is provision for discretionary payment on such terms and
conditions as maybe prescribed by or under federal law of the export
duty on "mineral oils" produced in the state. Petroleum comes within the
meaning of "mineral oils" under Section 10 of the Petroleum Development
Act."
In addition to the right of the states, Sabah and Sarawak enjoy some
special sources of revenue, which is stated under Schedule 10, Part IV,
Paragraph One that assigned import duty and excise duty on petroleum
products to Sabah and Sarawak as well as Schedule 10, Part V, Paragraph
Three that assigned royalty and export duty on "mineral oils" totalling
10 per cent to Sabah and Sarawak.
"Petroleum", as defined in the Petroleum Development Act, falls within
the meaning of "mineral oils" and, therefore, 10 per cent combined
royalty and export duty on it constitutes part of the guaranteed revenue
for Sabah and Sarawak, the plaintiffs said.
"Furthermore the said Declaration in so far as petrol justice is
concerned is unenforceable by reason of being in contravention of
Article 13 (2) of the Federal Constitution of Malaysia which states that
no law shall provide for compulsory acquisition or the use of property
without compensation.
"The said Declaration fails to recognise that the State of Sabah is
entitled to one hundred per cent of the proceeds and income from the
extraction of petroleum offshore and onshore of Sabah waters," they
said.
The plaintiffs also referred to news reports by local politicians and
national leaders that Sabah has the potential of becoming the biggest
oil and gas producer not only in Malaysia but in the South East Asia
region with potential of producing one million barrels a day.
"The estimated reserves from the present Sabah oilfields is 1.4 billion barrels of oil and 7.7 trillion scf of gas."
Sabah politicians, they said had also been calling for a relook of the 1976 Petroleum Agreement.
The plaintiffs also referred to a media report in November 2011, which
reported Petronas discovering substantial oil reserves offshore of
Sabah, which is at Wakid-1 well, about 100km northwest of the State
Capital.
Meanwhile, Zainal, who was the spokeperson of the plaintiffs, when met
by reporters after filing the suit through counsel Marcel Jude, said:
"It is illegal for the Federal government to take our oil, all 100 per
cent of it belongs to the people of Sabah, the Malaysia Agreement 1963
is very clear on this."
He said they are contending that the 1976 agreement is in conflict with
the Federal Constitution which for the last 36 years successive State
government failed to address.