You've probably heard about this piece of news last week:[Source]
It's funny that I don't get that much of forwarded e-mails surrounding the fuel hike issue. Not sure it's a good or a bad thing. Nevertheless, here are some examples of the viral e-mail campaign on Petronas conspiracy theories circulating arround. Take them with a pinch of salt. Or not.
Viral 1: "The Petronas Subsidy Fish Analogy"
Misleading concept of Subsidy:
The word "subsidy" has been brandished by the BN government as if it has so generously helped the rakyat and in doing so incurred losses. This simple example will help to explain the fallacy:
Ahmad is a fisherman. He sells a fish to you at $10 which is below the market value of $15. Let's assume that he caught the fish from the abundance of the sea at little or no cost. Ahmad claims that since the market value of the fish is $15 and he sold you the fish for $10, he had subsidised you $5 and therefore made a loss of $5.
Question : Did Ahmad actually make a profit of $10 or loss of $5 which he claimed is the subsidy?
Ahmad makes a profit of $10 which is the difference of the selling price ($10) minus the cost price ($0 since the fish was caught from the abundance of the sea). There is no subsidy as claimed by Ahmad.
The BN government claims that it is a subsidy because the oil is kept and treated as somebody else's property (you know who). By right, the oil belongs to all citizens of the country and the government is a trustee for the citizens. So as in the above simple example, the BN government cannot claim that it has subsidised the citizen!
Viral 2: "The six 'option holders' of Petronas"
Poster by mob1900.
In view of the shocking developments as inevitable result of the sudden oil price hike, I would like to raise several issues with regards to the situation in Petronas which I believe most people are not aware of.
This is especially pertinent in the face of several revelations, such as the fact that the oil wells in Sabah will dry up six years from now. The issue has also been raised that Petronas ‘could go bust in 2018' forcing us to ask: Where have all the huge amounts of Petronas money gone to?
Has Petronas been managed so badly that despite it being the nation's biggest money-earner, it is now facing the possibility of going bust (bankrupt)? The first problem with Petronas is the fact that it was designed to be a secretive organisation.
The Petronas agreements have been classified secret. Why? What clauses are in the agreement that the people should know? This secrecy also include the secrecy of Petronas' detailed annual report which is shielded from public scrutiny, making it an organisation without public accountability.
The other shocking revelation that had came to my knowledge is that 80% of the oil produced by Petronas is not sold directly to the world market but is channelled through six 'option holders' who obtain the supply from Petronas at below market prices.
These option holder agents are the ones reaping the benefits in the oil price hikes. Who are these people? Why are there in the first place? Why has such a system been created for Petronas? Are these people, in fact, representing certain private interests?
It is also understood that this supply through the option holders is sold by contracts with a binding agreement for 20 or 30 years, causing huge losses for Petronas when oil price increases, as Petronas would then have to continue selling at the old agreed price.
Only 20% of Petronas's supply is sold through direct open bidding. Because of these arrangements, Petronas is sadly not maximising its revenue by dealing direct with the open world market. Instead, it has been incurring incalculable losses for the nation and for the people. How much this monstrous loss is, we will never know.
The members of parliament and the state governments should boldly raise up this very important issue in parliament or directly with the federal government for the benefit of the oil-producing states.
As soon as possible, leaders of the oil-producing states should seek for a review of the oil royalty rate and push for a differentiation of prices and benefits for the oil-producing states and the non- oil-producing states.
This review is being offered by the alternative government which is committed to giving the oil- producing states at least 20% oil royalty. This is a window of opportunity for all of us to demand for a review of the Petronas agreements, and to make Petronas more open and transparent. P
Parti Keadilan Rakyat also demands that the system of having the six option holders be abolished. A new system should be created in which the three oil-producing states are in control of the marketing arm of Petronas, to make Petronas trade directly in the world market with the aim of maximising revenue for the benefit of the nation.
Obviously, Petronas is a huge business organisation which is not accountable, secretive, and has been open to a lot of abuses, including the decision to use its revenue to bail out various individuals who faced bankruptcy as results of the Asian economic crisis ten years ago.
If the federal government truly wants to be responsible and accountable to the people as it claims it wants to be, it can begin to prove its sincerity for excellent governance by looking into the problems with Petronas.
[Source: Datuk Dr Jeffrey Kitingan via Malaysiakini Letters]
Viral 3: "KJ/SIL To Take Over As President and CEO of Petronas"
Petronas bashing is orchestrated.
The target is not PETRONAS, that’s what they want everybody to think. The target is Tan Sri Hassan Merican, PRESIDENT and CEO of PETRONAS.
Before I answer your question why, let me take you a few years back.
Immediately after Pak Lah took over from Tun Dr. Mahathir as of 31.10.2003, a small consulting firm named BINA FIKIR was invited to make a presentation to Pak Lah to present their views of Malaysian Economic situation back then. Subsequent events lead to another, soon they were meeting EVERY OTHER DAY, of course all these with the help from KJ, PM Son-in-Law. There were so many proposals from BINA FIKIR that even the Government senior officers couldn’t keep up. Meanwhile, a plan was hatched to tell the Malaysians that there is NO MORE MONEY IN TREASURY SO ALL PROJECTS ARE HALTED INCLUDING DOUBLE-TRACKING, SINGAPORE CROOKED BRIDGE AND MANY MANY MORE!
But Pak Lah tells Malaysian that an action plan is in place as he called for the General Election in March 2004.
MR. CLEAN won the election in 2004 by breaking records for UMNO as well as BARISAN.
Earlier newspaper reports were focusing on FOCUSING on KHAZANAH NASIONAL BERHAD performance and after several collective comments on Khazanah, Pak Lah announced that the MD, Datuk Anwar Aji, of Khazanah is to be replaced by Azman Mokhtar on June 1, 2004, barely 2 months after election.
AZMAN was the brain and the MD of BINA FIKIR.
Datuk Anwar was given Chairman of Faber Group Berhad.
It was planned so well that people hardly noticed.
KJ was successful in planting his people at Khazanah Nasional Berhad and now has access to ALL THE ASSETS OF KHAZANAH.
Khazanah passive policy on its investments were changed almost overnight.
They were allowed to use their assets as securities to raise monies for INVESTMENTS OVERSEAS.
Invest they did into the billions of ringgits thru certain investments advisors which makes tonnes on advisory fees and services.
Personal greed is difficult to satisfy!
PETRONAS is by far the richest company and most profitable in Malaysia.
PETRONAS has won several accolades as the BEST MANAGED COMPANY too.
PETRONAS is in the Fortune 500 companies.
And Tan Sri Hassan Marican is a tough nut to crack.
To replace Tan Sri Hassan is not an easy tasks.
So when the opportunity comes, KJ & CO took full advantage to bash PETRONAS.
Using mass media which he controls, using many bloggers to plant hate mails into various local sites and even to the extent of spreading sms-es sent nationwide to boycott Petronas stations and productes, he is seeing the desired results.
He further attack Petronas for not being transparent in the annual account, which is strange because Khazanah Nasional does not even publish its annual account. It is only Petronas being bashed.
Tan Sri Hassan came out defending PETRONAS saying accounts area available, only certain people refuses to read it!
Never before has Tan Sri Hassan has to defend himself. Defend he did, he tried, but Hassan does not have the power KJ has on the media.
Silly allegations were thrown at PETRONAS all with evil intention to make people angry at Hassan for the fuel hike which was actually the DOLLAH’s GOVERNMENT DECISION.
The modus operandi was similar to Khazanah Nasional, ONLY PETRONAS seems more difficult.
More attempts to unseat Hassan will be planned by these greedy people, and all they need is a wrong move by Hassan, so far he has done none of it.
ONCE THEY WIN, THEY WILL REPLACE HASSAN WITH THEIR OWN PEOPLE AND PETRONAS MONEY (OUR MONEY) WILL BE AT THEIR DISPOSAL!
Someone MUST STOP THESE CULPRITS. And don’t say I did not FOREWARN YOU.
BARBARIANS ARE AT THE GATES OF PETRONAS!
[Source: Hamba Allah via Tun Teja]
Oh, Turun! Turun! on 6 July 2008 9 am Amcorp Mall.