Government-linked companies such as Petronas must be transparent
DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw urges government-linked companies (GLCs) such as Petronas to be transparent and fulfil their corporate responsibilities.
The Petrons Gas financial report indicates its financial year ending on 31 March. For instance, the 2006 figures are from 31 March, 2005 to 31 March, 2006.
Among the GLCs, such companies as Petronas, Sime Darby and Guthrie are prominent. Although they mention corporate responsibilities like health, safety and environment, what they have done is inadequate. Meanwhile, they must improve on transparency. They are registered companies. They do not submit their financial reports to Parliament.
With the financial year ending 31 march, 2006, Petronas's profit before tax is RM18.62 billion. Petronas Gas annual report shows 2006 profit before tax as RM1.0249 billion, 2002 0.6056 billion, 2003 RM0.7791 billion, 2004 RM0.7409 and 2005 RM1.0249 billion.
For the financial year 2002, Petronas Gas's revenue shows RM1.9496 billion, 2003 RM2.2357 billion, 2004 RM2.2302 billion, 2005 RM2.3073 billion and 2006 RM2.8393 billion.
Clearly, the revenue and profit of Petronas from petroleum and gas are huge. It and other GLCs must have transparency and corporate responsibilities.
posted by Tan Seng Giaw @ 8/01/2006 03:53:00 PM
2 Comments:
Since 1974, PETRONAS has contributed significantly to the nation. In financial year 2004/2005, PETRONAS has contributed RM31billion in the form of tax, dividend and royalty. This represents a 47% increase compared to the previous year. In addition, PETRONAS has contributed gas subsidy worth RM25 billion since May 1997. Price of gas the energy sector is charged is RM6.40 per million British Thermal Unit (mmbtu) compared to commercial price of RM25.70 mmbtu. We can’t just tax PETRONAS because of the current oil & gas scenario. PETRONAS operates internationally and requires heavy investment to keep itself competitive with other oil majors. In financial year 2004/05, PETRONAS invested 61% of its investment in exploration and development alone, amounting to RM10.7 billion.
We are told Petronas made billions every year over many years.
People have questioned what happened to past accumulated profits.
We are lulled into believing that Petronas is doing well because of its huge profits. It could have been better especially with the rising oil prices.
It is only with transparency and clear accounting policies that we are able to judge and compare, not selective information to make us feel good.
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