What checks and balances are missing for Petronas?

Question

Accepted Answer

Missing Parliamentary Oversight for Petronas

Subang MP Wong Chen has called for greater parliamentary oversight of the state oil firm Petronas, arguing that current structures lack sufficient checks and balances. He believes that while Petronas executives and directors are competent, the absence of robust parliamentary scrutiny and the potential for political interference undermine better governance. Wong Chen's concerns stem from the belief that Petronas should be accountable to Parliament, not solely to the Prime Minister, and that certain "national services" undertaken by the company may be a result of fiscal indiscipline within the federal Cabinet.
Lack of Accountability to Parliament

Wong Chen asserts that Petronas, as a state-owned enterprise, should be answerable to Parliament rather than exclusively to the Prime Minister. He points to the Petronas Development Act 1974, which he states designates the Prime Minister as the sole individual privy to the company's internal affairs. This exclusivity, in his view, prevents broader parliamentary understanding and oversight, suggesting that MPs should be empowered to scrutinize and potentially shield Petronas from what he terms "feckless requests for funds" from the Cabinet.
Questionable "National Services" Undertaken

The Subang MP raised concerns that not all of Petronas's "national services" are necessarily essential. He posits that some of these undertakings may arise from what he describes as poor fiscal discipline within the federal Cabinet. This implies that Petronas might be directed to engage in activities that are not core to its business or national interest due to broader governmental financial management issues, which would benefit from parliamentary review.
Proposals for Enhanced Scrutiny

To address these perceived gaps, Wong Chen has proposed specific mechanisms for increased parliamentary involvement. He suggests the formation of a select committee that could operate under a non-disclosure agreement, allowing Members of Parliament (MPs) to gain insight into Petronas's operations without compromising sensitive information. Furthermore, he advocates for Petronas to brief Parliament directly whenever its annual report is published, moving beyond the current practice of solely briefing the Prime Minister. Wong Chen acknowledged that this issue has persisted across different administrations, noting similar difficulties encountered even when his own Pakatan Harapan coalition was in power.

Reading history

Hide →

This history is cleared when the page is closed.

What checks and balances are missing for Petronas?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends