KUALA LUMPUR: The United Malay Economic Action Council (MTEM) said today its demand for Petronas president Datuk Shamsul Azhar Abbas to quit stays despite the national oil company’s pledge to look into the group’s complaints.

After engaging the group in a two-hour meeting yesterday, council chairman Datuk Syed Ali Alatas (picture) revealed that Petronas had agreed to set up a joint committee to “thrash” issues out including addressing accusations that the multinational had sidelined Bumiputera companies.

Although he described the outcome of the meeting as “positive” and that the council “is moving on”, the council saw no reason to withdraw the demand for Shamsul’s exit.

“Just like when a married couple is divorced, does that mean whatever one of them did wrong in the past can be forgotten? No.

“There is no reason for us to withdraw the demand. The letter stays,” Syed Ali told reporters, saying that the council would only reconsider withdrawing its demand if Petronas “repents”.

On February 2, MTEM, an umbrella body of 63 Malay business groups, had called on Shamsul to quit the state oil company’s board before Election 2013, claiming Petronas had failed to protect Bumiputera interests and instead given priority to foreign firms.

It further accused the Petronas chairman of sidelining Bumiputera companies, including those that were qualified, when it dished out contracts for its projects.

The council alleged that Petronas’s cash flow had dwindled to RM162.2 billion, a drop of RM2.1 billion, and that profit after tax showed a downward trend that included closing down operations in Sudan.

MTEM expressed concern that Malaysia’s only Fortune 500 company would be gambling its valuation risk worth RM300 billion over the next five years.

Syed Ali said today the council would submit tomorrow a letter demanding confirmation that Petronas would respect the negotiations made in yesterday’s meeting.

“It’s just a formality. I don’t think there would be any problems for Petronas to reply within a week,” he said.

MTEM chief executive Mohd Nizam Mahshar, speaking at the same press conference, said the council was now in the process of gathering feedback before it tables the issues at a meeting with Petronas at a date yet to be determined.

The national oil company’s move to engage MTEM came on the heels of Tun Dr Mahathir Mohamad’s statement that Petronas is “caught” between championing its founding objective of uplifting the Bumiputera business community, and to open up its business for foreign participation in line with its business globalisation plan.

On February 2, MTEM, an umbrella body of 63 Malay business groups, had called on Shamsul to quit the state oil company's board before Election 2013, claiming Petronas had failed to protect Bumiputera interests and instead given priority to foreign firms.

It further accused the Petronas chairman of sidelining Bumiputera companies, including those that were qualified, when it dished out contracts for its projects.

The council alleged that Petronas's cash flow had dwindled to RM162.2 billion, a drop of RM2.1 billion, and that profit after tax showed a downward trend that included closing down operations in Sudan.

MTEM expressed concern that Malaysia's only Fortune 500 company would be gambling its valuation risk worth RM300 billion over the next five years.

Syed Ali said today the council would submit tomorrow a letter demanding confirmation that Petronas would respect the negotiations made in yesterday's meeting.

"Its just a formality. I don't think there would be any problems for Petronas to reply within a week," he said.

MTEM chief executive Mohd Nizam Mahshar speaking at the same press conference said the council is now in the process of gathering feedbacks before it tables the issues in a meeting with Petronas at a date yet to be determined.

The national oil company's move to engage MTEM came at the heels of Tun Dr Mahathir Mohamad's statement that Petronas is "caught" between championing its founding objective of uplifting the Bumiputera business community, and, to open up its business for foreign participation in line with its business globalization plan.

The former prime minister had also said that the Petronas management had decided to look into MTEM's concerns.

The council said it expects to finalize details of its proposals on the joint committee by next week.


By Syed Jaymal Zahiid / The Malaysian Insider

http://www.themalaysianinsider.com/malaysia/article/malay-lobby-says-petronas-ceo-quit-demand-stays-despite-positive-meet/