Ku Li calls for review of federal-state relations

Tengku Razaleigh Hamzah has called for a review of the federal and state relations, in order to keep up with recent developments.

He said when the Malay Rulers signed the Federation of Malaya agreement in 1947, they did not foresee future circumstances.

"Hence, maybe it is worth (another look) at the matter," said Tengku Razaleigh, at a forum organised by the Constitutional Law committee of the Bar Council in Kuala Lumpur. 

"I had suggested during a meeting with a Ruler 25 years ago, who is still alive today, of the need of changes in (federal government and state) relations."

Tengku Razaleigh said other countries which adopted federalism such as Canada and Australia had made changes to their agreements.

"Maybe we can emulate such changes with amendments coming from the council of rulers."

He said this in view of some state government complaining that they were starved of resources, especially those run by the Pakatan Rakyat coalition.

Instances include the federal government's decision to deny Kelantan and Terengganu oil royalties.

Kelantan oil royalty

Describing the matter as serious, Tengku Razaleigh, a former finance minister, said federal authority over a state's resource was originally derived from the sovereignty of a state.

In the case of oil royalties, he said the federal government formed Petronas in 1974 as a common trust between federal and state governments for all petroluem found anywhere in Malaysia.

“So long as Malaysia had any share in the oil, the profits would be divided between federal and state government according to a simple formula of five percent to each.”

The federal government, Tengku Razaleigh said is now reneging on a contract and in contempt of Parliament.

“Its attitude to these oil payments is transparently based on one criterion: those states whose legislatures are not controlled by Barisan Nasional are denied payment. This practice punishes citizens for their choice of state government. 

"This is an attack on the right of the people to choose their own government within our system of parliamentary democracy. Oil payments are just one form of selective denial of funds to the states.”

Heading towards Malayan union?

Tengku Razaleigh described the federal government as behaving like a unitary state and not a federation, like the Malayan Union that was proposed before independence in 1957.

"Ironically we have become in practice the Malayan Union which an earlier generation had resisted and defeated," he said.

"The autonomy of the states, their rights to development and to the husbandry of their own resources and the proper role of the rulers and the way in which religion is government in public life are displaced in favour of increasingly centralised and absolute power."

"This is unconstitutional and must be resisted with just as much vigour as we resisted the Malayan Union. Malaysia is not viable in the long run as a unitary state," he added.

Speaking to reporters later, Tengku Razaleigh said Malaysia is progressing towards a central leadership with a very powerful Prime Minister that is surrounded by 'yes men'.

He said if this was not curbed, there would be further limits to the powers of the states and her people.

On claims that Kelantan was not entitled to oil royalties by virtue of Emergency (Essential Powers) Ordinance 1969 still being in force, Tengku Razaleigh said the Petroleum Development Act 1975 supercedes the ordinance.

Senate diminishing state powers

Another speaker, former Malaysian Bar president Sulaiman Abdullah ( right ) said people were unaware that state powers were being eroded, nothing that out of the 70 representatives in the Dewan Negara, only 26 were appointed from the 13 states.

"People talk about the need to get a two-thirds majority, but what is actually needed is a simple majority of one. Laws cannot be passed with a simple majority," he said.

Citing another example, Sulaiman said that under the current system requires state legal advisors are appointed by the federal government and at times offer ill advise to the menteri besar or chief minister.

“They report to the Attorney General and hence, they are bound by the Federal government policy or whims. This should not be the case as state legal advisors should report under the menteri besar,” he said.

Final speaker lawyer Malik Imtiaz Sarwar ( left ), described the federal stranglehold of power as a new form of collonialism by BN.

“What is needed now, is a strong awareness by the people over their rights and the rights of the states, so there would not be an usurpation of powers by the federal government,” he said.

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