KOTA KINABALU – Newly sworn in Bugaya assemblyman Jamil Hamzah has questioned whether Sabah has installed a meter gauge to record the amount of oil and gas extracted from the state.
He said the suggestion was made in 2010 by Petronas founder Tengku Razaleigh Hamzah as a way to avoid leakages in state revenue deriving from oil and gas resources.
Noting a point in the state’s budget for 2023 to increase and sustain the state revenue by beefing up enforcement, he asked what action the state is taking to deal with the revenue leakages.
“In 2010, Petronas founder Tengku Razaleigh Hamzah had proposed to install a meter gauge so the state would be able to record the amount of extraction from oil and gas by the oil firms in Sabah.
“Although the oil and gas output are being stated in the Petronas annual report, it did not specifically state the output from the region and state.
“I wish the state government could detail whether this meter gauge has been installed or not, or what formula is used by the state government to determine the amount of oil and gas output by Petronas or by any other oil firms,” he said in his maiden state budget debate in the state assembly here today.
Jamil also pointed out that there is too much focus on Article 112D of the federal constitution in regards to the state’s special grant issue.
He said it is baffling that there is no focus on Article 112C, which specifically points out Sabah’s 40% revenue entitlement.
Article 112D refers to the review of the special grant every five years.
Jamil questioned the lack of emphasis on Article 112C and asked if the state agrees with the federal government that the provision is no longer applicable.
Jamil was referring to former finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz’s statement that the 40% revenue entitlement is no longer applicable. – The Vibes, November 28, 2022
