PAC: We can't touch Petronas, will ask Prime Minister to act

PAC chairman Datuk Nur Jazlan Mohamed said that the parliamentary body that he heads does not have jurisdiction over the national oil firm as Petronas is governed by the Petroleum Development Act 1974.

Under the act, Petronas is only answerable to the Prime Minister and not to Parliament.

“If it (the allegation) is true then it is very wrong, it’s like you evaded tax and then you sell those things to someone else,” Nur Jazlan told a press briefing today after the new PAC met for the first time.

“But Petronas does not come under the PAC, they answer to the prime minister. We will send a letter to recommend action against the management. Because this is a criminal act,” said Nur Jazlan, who stressed that the PAC represents the voice of the rakyat.

In the lawsuit, first reported by The Malaysian Insider, superbike maker Momoto Sdn Bhd, is claiming RM260 million against a unit of Petronas, Petronas Technical Services Sdn Bhd, for breach of contract in the sale of an “ill-fated decade-old” racing motorcycle venture.

According to the report, Momoto bought nearly 130 superbikes, the Petronas FP1, in a tender exercise in 2011.

However, Momoto claimed it discovered that the defendant, Petronas Technical Services Sdn Bhd, did not have the approved permits (APs) to bring in superbikes from the United Kingdom.

The defendant allegedly did not pay Customs and Excise duty amounting to RM29 million for 129 superbikes.

Momoto, which has a paid-up capital of RM2.5 million, entered into an agreement with Petronas Technical Services in March 2011 following which it paid the full purchase price for 129 superbikes and spare parts from the defendant.