PETRONAS MONEY, strange that Che Det should ask, and why now?
The Malaysian Insider and www.malaysiakini.com
July 3, 2009
PETRONAS MONEY, where did it go?
PETRONAS adviser Tun Dr Mahathir Mohamad today asked what did the government spend with the RM253.6 billion payment from the national oil company over the past six years when his successor Tun Abdullah Ahmad Badawi was prime minister.
The former prime minister, a trenchant critic of Abdullah, wrote in his www.chedet.com weblog that PETRONAS has been paying dividends, taxes, royalty and export duties to the government since 1976, after it was set up as the national custodian for fossil fuels.
“Where has the money gone to?” Dr Mahathir asked. He said PETRONAS began by paying RM300 million in 1976, rising to RM2 billion in 1981, when he assumed office. The total from 1981 to 2003 was RM168.8 billion for the 22 years that marked Dr Mahathir’s tenure as the country’s fourth prime minister.
“From then onwards it increased from RM19 billion in 2004 to RM67.8 billion in 2009. The total for six years is RM253.6 billion,” he said. It is not known if the figures were adjusted for foreign exchange fluctuations as oil is usually quoted in US dollars.
“I am sure the government had spent the money wisely. It would be interesting to know what the RM253.6
C.H.E Det
billion was spent on,” said Dr Mahathir, who retired as prime minister in favour of Abdullah, who stepped down in early April. His remarks today came after a June 25 announcement by PETRONAS that it had paid RM30 billion in dividends to the federal government for the financial year ended March 31, 2009.
The amount was despite a 14 per cent decline in net profit to RM52.5 billion due to lower crude oil prices and higher operating costs and included a special dividend of RM6 billion which was declared in the last calendar year. Petronas paid out RM24 billion in the previous financial year.
Apart from the dividends, PETRONAS— the country’s only Fortune 500 company — also paid RM29.4 billion taxes, RM6.2 billion royalties and RM2.2 billion export duties for the last financial year, totalling RM67.8 billion to the federal government against RM56.8 billion in the previous year.
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Strange that Che Det should ask, that was my first reaction when I read his comments carried by The Malaysian Insider and Malaysiakini.
There is no transparency and for years, we as citizens have been denied full disclosure. And unlike Bank Negara Malaysia, there was no way one could get any information on the financial affairs of PETRONAS. It was next to impossible when Che Det was prime minister. This piggy bank is under the direct purview of the Prime Minister, not accountable to Parliament.
Apart from the payments made to the Federal Government totalling some half a trillion ringgit, we are in the dark as to how much was spent directly by PETRONAS on various mega projects and bailouts during the Mahathir era (the list provided by Malaysiakini does not tell the whole story of how PETRONAS money was spent) and Badawi’s too.
Perhaps, the time has come to create a Royal Commission to investigate hands-in-the-till activities of the UMNO-led Barisan Nasional government with respect to PETRONAS. One suspects that a substantial portion of the PETRONAS money has gone into the pockets of corrupt leaders and their families and cronies through over priced contracts, etc.—Din Merican
dinobeano - July 3, 2009 at 10:35 pm
Din, thank you for your info on the Petronas money used during the tenure of Dr. Mahathir.
Are your not going to provide info about the RM253.6 billion
used for the last 6 years during the tenure of Abdullah Badawi.
Looking forward to your valuable info.
ilham - July 3, 2009 at 10:50 pm
“Perhaps, the time has come to create a Royal Commission to investigate hands-in-the-till activities of the UMNO-led Barisan Nasional government …”
Putting your hand into the cookie jar comes with the job.
Mr Bean - July 3, 2009 at 11:18 pm
From its inception Petronas has been the deep pocket for the PM. Petronas has been bailing out so many companies including MAS years ago. During the Buy British last, Petronas had to buy MAS aircraft otherwise MAS can’t fly to LON.
Petronas was also Che Det’s private piggy bank. You name it and Che Det has abused it. Whar else is there to say. Now the shoe is on the other foot and so Che Det is crying foul.
shrek - July 4, 2009 at 12:23 am
I still say Petronas is a ‘daylight robbery’ commited against Sabah/Sarawak
The 5%-95% oil revenue allocation drafted by the federal govt was initialy rejected by the 76′ triumphant Berjaya state govt in a meeting held in Labuan. Unfortunately the cessna – plane crashed tragedy under mysterious circumstances
Killing all 6 senior state ministers left Sabah with no formidable opposition to the lopsided
affair.
A deal was reached favouring the federal authorities soon after!
Danildaud - July 4, 2009 at 1:00 am
‘Sudah gerharu cendana pula’ . Ini lah sifat2 munafik yang telah menular di dalam jiwa2 pemimpin2 UMNO di era Mahathir dan terbawa2 hingga sekarang ini. Meloyakan !!!
Yang paling menyedihkan, masih ramai Melayu yang ‘buta dan tuli’ akan perbuatan perampok2 khazanah2 negara ini.
ariffdanial - July 4, 2009 at 1:36 am
It was like a gang rape. The victim of a violent gang rape could never remember the identities of the rapists. The raids into the nation’s coffers were numerous and intense that they lose count of who did what and when – or why??
Mr Bean - July 4, 2009 at 1:58 am
Funny HE should ask!
donplaypuks - July 4, 2009 at 2:00 am
not sure why PETRONAS paid a higher this year to government despite of the decline in net profit for 2008/2009 fiscal year compare to net profit in 2007/2008. Either way,che det’s query was quite valid, since the total paid dividends, etc during his reign was lot less compared to amounts paid to government in Tun Abdullah 6 year tenure. And with that value in the past 6 years, numbers of development for peoples and nation should be significant. Wonder how would najib utilise the money then…
____________
Some, it is too simple a conclusion to say that the amount paid to the Badawi Government (6 years) compared to sums of money transferred to the government under Mahathir’s 22 year rule. Money is so fungible and can be taken out of this piggy bank in many ways. That is why we need to be transparent and accountable in our deployment of national assets.
To continue allowing PETRONAS to be answerable to the Prime Minister is not a wise option. PETRONAS belongs to the Malaysian people and its assets, revenues and profits must be used to benefit all with multiplier effects on the economy. Najib cannot be counted upon to be prudent in the use of the resources of our iconic national oil corporation.The time for change has come, and PETRONAS like Bank Negara Malaysia must release its accounts to Parliament and the public. As citizens, we have the right to information. So we need to have Freedom of Information, not Official Secrets Act. —Din Merican
some - July 4, 2009 at 3:16 am
It takes a thief to catch a thief. And like Sherk has said now that the shoe is on the other foot Che Det is crying foul. Hope readers like Mickey will take stock of this and be more discerning about politics ala Umno.
Tok Cik - July 4, 2009 at 8:14 am
Din, he is the adviser and he is the Mahathir, you believe he doesn’t know where those money has gone to? Come on! aWhile you are at it, may we ask if you dare to spell out all the income of Petronas since you took office. You asked Badawi for the explanation. Would you explain the incomes of Petronas during your regime?
Putting your hand into the cookie jar comes with the job? Come on Mr Bean!!! Only 3rd class PM would do this to a developing nation… we are talking of a possibility of a trillion of Ringgit (a conservative estimate) gone to waste to boost over-inflated egos of Mahathir and Badawi and soon it will be One-Malaysia Najib.
___________
Muhamad, good comment. Mr Bean is being cynical. It is time we have a national petroleum heritage fund like Norway’s to be managed professionally in a transparent and accountable manner. Even Timor Leste has created such a fund to ensure that petroleum revenues are invested for future generations.—Din Merican
Muhamad - July 4, 2009 at 8:18 am
Royal Commission. Answerable to Parliament. Transparency. Accountability.
You guys sure are veritable optimists, seeing always the half-full glass even as our national coffers are being fully emptied.
All these institutions work if there are proper standards of operations in place. That all the checks and balances, among them having bold and honest law makers and enforcers, the freedom to write and report honestly without fear and favor, and to punish thieves and crooks whatever their affiliations, are in place and applied in accordance to the strictest precepts of integrity. Of late this has been as rare to find in bolehland as a camel in the tundra. These standards went out a long time ago. The tai-iching that goes on every time some scandal surfaces would put both Houdini and Copperfield to shame.
And yet we call for inquiries, commissions et al, as though the people who will be populating those bodies themselves can be trusted. That such inquiries will not be stymied by crooks and cronies who are the real powers behind the thrones. Same wine, just different bottles. In the end those entrusted with responsibility for the nations affairs, just leave the rest with nothing but a bad taste in the mouth. Western style ideals don’t work here. We turd worlders have our own standards. And much as we want to deny it, we are cut from the same cloth.
There are no easy solutions. The best I can come up with is that some real high level prosecutions based on solid evidence could help start the honesty ball rolling. But then again, we would have to depend on our trusty judiciary. And that by itself is another rat-bag full of self-serving scum.
Mr Bojangles - July 4, 2009 at 1:05 pm
mr din i agree with danildaud . this is infact the rape of the sabahan’s and sarawakian’s . we all know that half a billion ringgit of this money was paid as commission for the 2 submarines . hopefully, the submarines are afloat now and the guy who collected the money is now in oxford working on his phd. and what do we call this ? rape or poetic justice ?
and of course some of it would have been squandered on the pkfz project.
and inspite of all this , cik det chooses to only refer to malaysians as malays , indians and chinese and does not even mention the sarawakians and sabahans. and all the sabahan and sarawakian
leaders do is just keep quiet . someone should tell cik det that the sabahan’s and sarawakians did not join the malays , indians and chinese . instead they joined malaysia and after joining malaysia all they are entitled to is 5 % of the oil as royalty whereas the malay leadership can collectively squander 95 % of the royalty. WHAT BULLSHIT.
jeffery gascon - July 4, 2009 at 3:53 pm
All those who had their hands in the till will be placed in pots of boiling oil (supplied by Petronas) in eternal hell.
pat ling - July 4, 2009 at 5:13 pm
All those who had their hands in the till will be placed in pots of boiling oil (supplied by Petronas) in eternal hell.
Oops…forgot to say great post! Looking forward to your next one.
pat ling - July 4, 2009 at 5:34 pm
The best candidate to Manage Petronas during these difficult world financial situation is Muhammad bin Muhammad Taib as the new CEO of Petronas with Khir Toyo as his assistant. With these two top guns helming Petronas, Petronas might start drilling for oil and gas soon in the distant planets.
Dollah - July 4, 2009 at 7:00 pm
Mr. Bojangles,
I understand where you are coming from. I feel your frustration and anger. Yes, nothing will change under UMNO-BN rule because they have to protect their own kind. They tend to lose a lot once they are without the power to govern.
The problem is that Malaysian voters keep voting them in even in 2008. Najib will not do anything to Mahathir or Badawi because that would be the end of him. The Prime Minister himself has more than a few skeletons in his closet.
Vote in an alternative government, then all hell will break loose since Pakatan Rakyat is committed to good governance and the rule of law, etc. Because they will lose a lot, UMNO-BN will do whatever it takes to put Anwar Ibrahim behind bars, and in that way, they think PR will no longer be a political force. They forget that Malaysians want clean and accountable government. Right now, PR is the future, Harapan Baru Untuk Malaysia. One Malaysia is the ancien regime which is corrupt and decadent.
Din Merican - July 4, 2009 at 7:35 pm
Who is Mahathir? Who is Najib? If not a disgrace to humankind.
It is time to take a pause and reflect on the passing of one human being who tried to make a difference and did, in focusing our attention to the plight of children all over the world and by doing so focus on our own It is the man in the mirror.
A man like Michael Jackson comes perhaps once every hundred years. He does not belong to any one country, one people but to the whole world – and now he belongs to the times.
Mr Bean - July 4, 2009 at 7:52 pm
I have not read Dr.M’s blog on this, but if he really did ask “Where has the money gone to” regarding Petronas’ accounts, it is the height of audacity from someone who, together with perhaps only a very small group of individuals, were the only ones privy to this information. Trying to rub salt into the country’s wounds I would say.
Isa Manteqi - July 4, 2009 at 10:00 pm
Love him or hate him, he is Michael Jackson. He was much, much more than we can ever hope to be.
He has yet to be laid to rest. Let us celebrate his life!
Mr Bean - July 4, 2009 at 10:07 pm
Mr.Bean : only you could introduce Michael Jackson into a thread of the wealth of Petronas. But now that you have I feel that anyone who has watched MJ sing and dance as a young lad will know that he was born to entertain. He may have died a sad individual but to millions worldwide he gave us what he was best at – sheer entertainment.
Rest in Peace Michael Jackson.
Isa Manteqi - July 5, 2009 at 12:56 pm
rest in peace michael, may Allah bless your soul, ameen.
dr_abi - July 5, 2009 at 4:30 pm
“He may have died a sad individual but to millions worldwide he gave us what he was best at – sheer entertainment.” Isa Manteqi
Michael Jackson was not just entertainer extraordinaire.
His fans are as much female as they are male, of all ages and spanning several generations, as much white as they are non-whites, 60% Democrats and only 30% Republicans. You’d think they are mostly democrats because they are black. That is not so.
That in itself is a political statement.
Mr Bean - July 5, 2009 at 6:15 pm
You have a nice site! Great information!
Michelle - July 10, 2009 at 9:19 pm