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By Bede Hong
Published on 20th March 2010 Ó Malaysian Mirror (used by permission)

KUALA LUMPUR - Tengku Razaleigh Hamzah has refuted suggestions that former Sarawak chief minister Abdul Rahman Yaakob had signed the Petroleum Development Act 1974 against his will.

Replying to a question from the floor at a public forum here Saturday, the founding chairman of national oil corporation Petronas said Rahman had signed the pact with the Federal government on his own accord.

"As far I know, the negotiation was conducted by Rahman on behalf of Sarawak with his team of people, including state ministers,” Tengku Razaleigh told the forum, organised by the Bar Council at its headquarters here.

A participant from the floor had asked the Umno veteran if the former CM’s then deputy, Stephen Yong, had pushed an unwilling Rahman into sign the agreement.

'States should receive fair share'

The former Finance minister said, besides him, his team comprised Raja Mohar Badiozaman, who was the special economic advisor to the government (from 1972 to 1988) and Tun Ismail Ali (former Bank Negara governor).

“Tun Salleh Abbas (former Lord President) was never involved because he came in later to draw up the law," added Tengku Razaleigh

Since he had helped to draft the Act, the Kelantan prince said he had a better insight into the rights of states to claim oil royalties.
 
Tengku Razaleigh reiterated that his home state and other oil producing states should receive their fair share of cash payments for oil, regardless of whether it was extracted off its shoreline or inland.

What 2nd PM wanted
 
Citing the PDA, the Umno veteran said second prime minister Abdul Razak Hussein had intended that states receive 5% royalty, regardless of whether the oil was onshore or within their territorial waters.
 
Tengku Razaleigh told the forum he is willing to mitigate the oil royalty claims by Kelantan and Terengganu, with the intent that Petronas pays its due to the two states.

Also speaking at the forum were constitutional experts Prof Shad Saleem Faruqi, Cecil Abraham and Tommy Thomas.-- Malaysian Mirror