Court to decide on Feb 11 if Sarawak’s suit against Petronas for unpaid SST will proceed

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Fong (centre) walking down the staircase towards the courthouse lobby together with State Attorney-General Datuk Talat Mahmood Abdul Rashid (left) and his deputy Saferi Ali.

KUCHING: High Court Judicial Commissioner Christopher Chin has fixed next Tuesday, Feb 11, to rule on whether the civil suit of the Comptroller of the State Sales Tax (SST) and the Sarawak government to recover unpaid SST from Petroliam Nasional Berhad (Petronas) should proceed.

State legal counsel Dato Sri JC Fong said this was decided at the court proceeding in Chin’s chambers this morning.

He explained that Petronas had asked for a postponement of the hearing because the corporation is appealing against the dismissal of the recusal application on Chin.

Fong told reporters that the Sarawak government is against the application for an order of stay of the civil suit because it is a case of public interest.

“The state says that they (Petronas) have no ground, let’s proceed with the hearing. The case is of public interest and it should not be stopped just because they (Petronas) are appealing (against the dismissal of Chin’s recusal),” he said.

On Jan 23, Chin dismissed Petronas’ application to recuse him as he found that the application was an affront to the judiciary, was frivolous and without merit.

He said the public can be comforted that the very best ideals of an independent judiciary are “alive and well” in Malaysia and therefore any attempt to subvert these ideals must be firmly resisted.

“To suggest that judicial commissioners can be perceived as biased because of their temporary tenure and that their appointment and future depend on the Prime Minister is itself and affront to the judiciary,” he said in open court.

“One good thing has emerged from this application for which I am grateful to the defendant. I now truly understand and with sharp focus, the true meaning of adjudicating without fear and favour.”

Chin said the defendant’s argument in support of their application for his recusal was cantered on a real danger of perceived bias. In making his ruling, Chin also awarded cost of RM50,000 to the plaintiffs.

Petronas lawyer Datuk Malik Imtiaz Sarwar had said that Petronas applied to recuse Chin on the ground that the situation gave rise to an appearance of a conflict of interest as Petronas reports to the Prime Minister and a Judicial Commissioner is a probationary judge who would be confirmed as a judge when appointed to the position by the Yang di-Pertuan Agong who acts on the advice of the Prime Minister.

The state is seeking to recover RM1.3 billion in unpaid SST from Petronas in the suit.

The SST was imposed on petroleum products beginning January 1 last year but the national oil company has refused to pay up as it claimed the state had no power to impose it.