By Dorcas Ting
KUCHING, Feb 6: The High Court here has granted five subsidiaries of Petroliam Nasional Bhd (PETRONAS) leave to proceed with a judicial review challenging financial penalties totalling RM120 million imposed by Sarawak’s gas regulatory authorities.
The penalties were issued by the Sarawak director of Gas Distribution together with the Ministry of Utility and Telecommunication, following enforcement action taken under the Sarawak’s Gas Distribution Ordinance 2016.
The ordinance, which came into force as part of Sarawak’s move to assert greater regulatory control over its gas distribution sector, requires companies carrying out gas-related activities in the State to obtain the necessary licences from the relevant authorities.
The five subsidiaries, namely the Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd, PETRONAS Carigali Sdn Bhd and PETRONAS LNG 9 Sdn Bhd, were accused of operating in Sarawak without first securing the required licences.
As a result, eight notices of non-compliance were issued, with penalties of RM15 million imposed for each offence, bringing the total fines to RM120 million. Under the law, fines of up to RM20 million may be imposed for each offence.
In granting leave for the judicial review, Judicial Commissioner Dean Wayne said the applications raised issues that were arguable and warranted full consideration by the court at a substantive hearing.
However, the court declined to grant a stay of the penalties pending the outcome of the judicial review, meaning the fines remain enforceable for the time being.
The matter has been fixed for mention on March 2, with the applicants directed to file their full submissions ahead of the hearing.
The PETRONAS subsidiaries are represented by lawyers Khoo Guan Huat and Alex Ngu Sze Shae.
The respondents are represented by State legal adviser Datuk Seri JC Fong and Senior State Counsel Mohd Adzrul Adzlan from the Sarawak Attorney-General’s Chambers, together with Federal Senior Counsel Ahmad Hanir Hambaly from the Attorney-General’s Chambers. — DayakDaily
