Exclusive: Malaysian energy giant’s board at odds with PM over payment to Sarawak state

Dateline 2020-06-26, KFGO:

The board and management of Malaysian national energy giant Petronas have urged the prime minister to drop a planned tax settlement with a state that is run by his political allies, three sources close to the company said.

Petronas’ chief executive, Wan Zulkiflee Wan Ariffin, resigned in opposition to the deal, sources told Reuters last week, and he is set to leave the company this month after 37 years.

But, sources told Reuters the rest of the management were still trying to convince Prime Minister Muhyiddin Yassin to block the pay-out to Sarawak, a resource rich state on Borneo island.

Muhyiddin’s decision will have big implications for Petronas and the national budget, and will be closely watched by foreign investors, on guard over corporate governance and financial transparency in Malaysia following the mega-scandal at sovereign fund, 1Malaysia Development Bhd (1MDB).

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