Petronas CEO is incompetent

I am surprised that Petronas President-cum-Chief Executive Officer Tan Sri Hassan Marican's statement that the national oil corporation could go bust by 2018 if all its profits go to subsidies.

He shouldn't have made such a statement after the company has enjoyed substantial revenue and benefited wholly from this national natural resource for the last 34 years.

For him to say that only reflects poor planning and lack of development vision on the part of Petronas. We in Sabah and as Malaysian citizens are now asking for more royalty because the people were given a pittance and have not enjoyed equitable sharing of this national wealth all these years.

According to the Petronas President, the corporation has so far reinvested RM178.9bil of its profits. Has it been done in the right direction?

Perhaps the President can enlighten us on the nature of those reinvestments.

In comparison, the Sabah Foundation is still thriving despite the State's timber depletion and its education programme and social services continue to be implemented for the benefit of the rakyat.

All this goes to show proper planning by the Foundation and reinvestment in the right direction.

Hassan said Petronas will go bust within 10 years if all its profits are handed to the Government to continue subsidising fuel.

Petronas is certainly in a position to do more for Sabah, now relegated to the status of being the poorest State.

Yet the people are made to suffer more, instead of alleviating their plight.

Nobody even knows until today how many scholarships Petronas had actually awarded to deserving Bumiputera and non-Bumiputera students in Sabah.

This is a big question mark? Who approved the scholarships? What is the breakdown like? And were these given mainly to members of one particular community?

Sabah people are in the dark over the distribution of Petronas scholarships due to lack of transparency. There should be more scholarships for eligible students from the State, regardless of race or religion but based on academic results and performance.

Petronas had generated a total profit of RM570bil since its formation in 1974 to last year, of which RM335.7bil had been given to the Government (in taxes, royalties and dividends) as revealed by Hassan, Hassan had not explained how the remaining RM55.4bil had been spent after a reinvestment of RM178.9bil of its profits.

Consumers are perplexed over the Petronas boss's statement that the corporation did not make a sen from the fuel price hike.

He should be more explicit in his explanation. According to him, all the oil companies get full market price for the petrol and diesel that they sell and the Government pay them the difference from the fixed price. He was quoted as saying that this is where the subsidy comes into play.

Who is collecting the increase? Is Hassan implying that the Government is pocketing the difference? Is the difference meant to pay for the fuel subsidy?

All Malaysian citizens have a right to know but as everyone knows, not everybody can gain access to the Parliament library.

With its financial resources and manpower, the national petroleum company should reinvest in research and development (R&D) in collaboration with local universities to search for alternative sources of energy.

In addition, Petronas should invest in human resource development for continued progress of the country.

Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement on improving public transport as one of the four measures to cushion the blow to lower-income group, the same was said in 2006 when the country experienced the last fuel price hike.

That year, he had said he wanted to use the money from the reduced subsidy to improve public transport services throughout the nation. But nothing significant happened to our public transport system in Sabah. Why were we left out?