Dr M's status as Petronas advisor violates Petroleum Act

Jun 28: The legality of former prime minister Dr Mahathir Mohamad's post in national oil giant Petronas as its advisor has come under question.

Kuala Terengganu member of parliament Raja Kamarul Bahrin Shah cited the Petroleum Development Act 1974 which states that any individual who is not part of the present government is not qualified to hold  the post.

“Under what provision is Dr Mahathir appointed as Petronas advisor, since Section 5 of the Act states that the advisory role is to be placed under a council and not any individual," Raja Kamarul told Harakahdaily at the parliament lobby yesterday.

Section 5 of the Act states:

"1. There shall be established a Council to be known as the National Petroleum Advisory Council consisting of such persons including those from the relevant States as the Prime Minister may appoint.
"2. It shall be the duty of the National Petroleum Advisory Council to advise the Prime Minister on national policy, interests and matters pertaining to petroleum, petroleum industries, energy
resources and their utilization."

As such Raja Kamarul (pic) urged for the formation of an advisory council comprised of representatives from state governments of oil-producing states to advise the prime minister on national petroleum and oil exploration policies.

Following his retirement in 2003, Mahathir was appointed as advisor of national carmaker Proton and Petronas.

Meanwhile, Raja Kamarul also questioned the awarding of an oil exploration site to a company called Pexco owned by telecommunication tycoon Ananda Krishnan, who is a close family friend of Mahathir.

He said it was shocking that certain individuals were given huge oil contract while at the same time the states of Kelantan and Terengganu had been denied oil royalties for oil extracted from their territories.