Petronas executive vice president of finance Datuk George Ratilal on 5 Jun 2013 has openly
disagreed with the Minister in Prime Minister’s Department Datuk Paul Low, who had previously
attributed Malaysia poor ranking Resource Governance Index (RGI) to Petronas’ overseas non-
disclosure agreements (NDA). Ratilal insisted that Petronas has been transparent in overseas
operations and their standard of disclosure is as good as other international oil companies such as
Shell and Exxon-Mobil.
This open disagreement from Petronas is clearly a rebuke aimed at our newly minted Minister in Prime Minister’s Department. My earlier rebuttal statement had argued that the poor RGI ranking has little to do with disclosure of overseas operations but operation and business activities within Malaysia and now Petronas confirmed it that even there’s such indicator, Petronas has been living up to international standard.
We hope that by now Paul Low has already read the RGI report and realize that Malaysia poor ranking in RGI is due to the lack of comprehensive disclosure policies in Malaysia legal framework such as the freedom of information law and the lax of Petroleum Development Act 1974 in requiring Petronas to disclose certain information of their operations and business decisions within Malaysia such as the award of contracts, exploration license, subsidies, royalty transfers etc. Petronas is not required by the law to disclose this information and therefore should not be the scapegoat of the Barisan Nasional government for their inability in resource governance.
If the BN Government is really serious about transparency, we would like to challenge BN to push for Freedom of Information (FOI) Act, which allows the public to seek information made by government ministries and department as well as government-linked companies (GLCs) like Petronas. With that, the public can ask for information from Petronas such as the award of contracts and license grants, which in turn lessen leakages and corruption in the process.
This open disagreement from Petronas is clearly a rebuke aimed at our newly minted Minister in Prime Minister’s Department. My earlier rebuttal statement had argued that the poor RGI ranking has little to do with disclosure of overseas operations but operation and business activities within Malaysia and now Petronas confirmed it that even there’s such indicator, Petronas has been living up to international standard.
We hope that by now Paul Low has already read the RGI report and realize that Malaysia poor ranking in RGI is due to the lack of comprehensive disclosure policies in Malaysia legal framework such as the freedom of information law and the lax of Petroleum Development Act 1974 in requiring Petronas to disclose certain information of their operations and business decisions within Malaysia such as the award of contracts, exploration license, subsidies, royalty transfers etc. Petronas is not required by the law to disclose this information and therefore should not be the scapegoat of the Barisan Nasional government for their inability in resource governance.
If the BN Government is really serious about transparency, we would like to challenge BN to push for Freedom of Information (FOI) Act, which allows the public to seek information made by government ministries and department as well as government-linked companies (GLCs) like Petronas. With that, the public can ask for information from Petronas such as the award of contracts and license grants, which in turn lessen leakages and corruption in the process.












