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'Harris, Pairin not at fault over signing oil royalty'
Published on: Sunday, April 13, 2014
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Kota Kinabalu: Former Chief Ministers Tan Sri Harris Salleh and Tan Sri Joseph Pairin Kitingan are not be blamed for handing Sabah's right to its oil and gas resources to the Federal Government, said an economic researcher.Zainnal Ajamain said, in fact, it was good Harris and Pairin signed the Petroleum Agreement in 1976 for it resulted in Sabah receiving five per cent (in oil royalty).

"If they didn't we might not get anything," said Zainnal, when presenting his talk in a mini-seminar on "How The Borneo States Lost Its Wealth". He said he was disappointed with Star Sabah chief-cum-Bingkor Assemblyman, Datuk Dr Jeffrey for "barking at the wrong tree."

"The petroleum agreement and Petroleum Development Act (PDA) 1974 were only a red herring," he said while claiming that the Federal Government assumed rights over the oil and gas from Sabah and Sarawak during the Emergency in 1969.

That is why he disagreed with Dr Jeffrey's argument that the PDA was invalid. "It is valid. What he (Dr Jeffrey) should be looking at are the three fundamental laws that were formulated under the emergency in May 15 1969," he said.

The laws were the Continental Shelf Act 1966, the Petroleum Mining Act 1966 and the Emergency (Essential Powers) Ordinance No. 7 1969.

"The Federal Government used the Emergency to unconstitutionally and forcefully transfer Sabah and Sarawak territorial waters to the Federal Government," he claimed.

Under Section 4 (2) of the Emergency (Essential Powers) Ordinance No. 7 1969, it said "for the purposes of the Continental Shelf Act, 1966, the Petroleum Mining Act, 1966 the National Land Code and any written law relating to the land in force in Sabah, any reference to the territorial waters therein shall in relation to any territory be construed as a reference to such part of the sea adjacent to the coast thereof not exceeding three nautical miles measured from the low-water mark."

He said everyone knows land is a state matter but was taken by the Federal during Emergency.

Hence, the signing of the Petroleum Agreement 1976 was a mere red herring because Sabah's territorial waters were already in the hands of the Federal Government, he said.

However, Zainnal said the Federal Government had lost its claim of ownership to Sabah and Sarawak territorial waters when it lifted the Proclamation of Emergency on Nov 23, 2011 to pave the way for the abolishment of the Internal Security Act (ISA).

"It means that all ordinances, gazettes and laws formulated during emergency are no longer usable including the three laws used by the Federal Government to take away territorial waters of Sabah and Sarawak," he said.

Zainnal said on March 2012, six plaintiffs comprising Lahirul Latigu, Micheal Peter Govind, Mohd Julfikar Abd Mijan, Dullie Marie, Joseph Welfred Lakai and him filed a civil suit over the legality of the Petronas to operate in Sabah waters.

Petronas was named as the first respondent and the Sabah State Government as the second respondent.

"We named the Sabah State Government as the second respondent because we want them to come out and say that land is a state matter but they didn't.

"Instead of providing support, the State Government demanded that the court strike off the suit and consider the six plaintiffs as not having any locus standi," he said.

On the other hand, one month after the annulment of the three laws, the Federal Government realised their "mistake" and attempted to rectify the situation by enacting the Territorial Sea Act 2012 Act 750 that was passed in June 2012.

"I am really disappointed with the Sabah and Sarawak MPs who were present in Parliament on April 18, 2012 when the Malaysia Territorial Sea Bill was debated and passed.

"Based on the available Hansard none of our MPs was involved in the debate. For such an important Bill especially for Sabah and Sarawak our elected MPs then failed us," he said.

Zainnal said Act 750 was to fulfill the requirement of United Nation Convention on Laws of the Sea (Unclos).

"This means that Act 750 was merely to determine the limits of Malaysia's maritime boundary internationally. This does not mean the ownership for the whole of Sabah and Sarawak territorial waters including the seabed and the subsoil must be transferred to the Federal Government.

In this context, he claimed that Act 750 was unconstitutional because it contravened the Malaysia Constitution, it was not in accordance to the Malaysia Agreement 1963 and the safeguards and caveats provided on Inter-Governmental Reports.

"Because Malaysia today is not under any Emergency Proclamation this Act 750 can be challenged by the Sabah and Sarawak State Government in the court of law," he said.

He said it was the obligation of the Federal Government to determine the maritime international boundaries, but it was the obligation and rights of the Sabah and Sarawak government to manage, administer and regulate any exploration, mining and economic activities in the Territorial Waters adjacent to the Borneo States.

"These are the rights of Sabah and Sarawak even before the formation of Malaysia," said Zainnal who is also the co-founder of United Borneo Front (UBF) and now is the secretary-general of a newly formed party.

"Even when the law says that by May 24, 2012 the rights of Sabah and Sarawak Territorial Waters were given back to the respective state governments, it is disappointing to see that until today both the Sabah and Sarawak state governments are still procrastinating on the issue.

"It is now two years and nothing is being done, for everyday of inaction

Sabah and Sarawak is losing millions of ringgit," he said.

The seminar at Palace Hotel was organised by the Progressive Institute of Public Policy Analysis Sabah (PIPPA) moderated by Amde Sidek.

Among those in attendance were Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee as well as politicians Datuk Liew Teck Chan, Datuk James Ligunjang and activist, Musli Oli.





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