KUALA LUMPUR (Oct 12): Sudan's transitional government has issued an arrest warrant against the country manager of Petroliam Nasional Bhd (Petronas) following growing tension between Malaysia and Sudan after Sudan’s move to seize Petronas’ assets in the African nation, Daily Sabah reported on Monday (Oct 11), quoting sources.
It was reported that sources said the actions against Malaysian national oil company Petronas and other foreign investors on allegations of corruption could negatively affect future bilateral relations between Sudan and other countries.
"As Sudan continues to hold up its allegations, Petronas has exhausted all diplomatic channels to amicably resolve the issue, the sources added,” Daily Sabah claimed in the report.
“Many other countries that have made a lot of investments in Sudan are also monitoring the situation closely. They are worried that they may be the next target of the transitional government,” the sources were quoted as saying.
It was reported that the Sudan transitional government is seeking to confiscate assets belonging to Petronas, alleging they were acquired through illegal means during the rule of ousted leader Omar al-Bashir.
According to the news report, following the toppling of al-Bashir, the transitional government passed an act and formed the Empowerment Removal, Anti-Corruption and Money Retrieving Committee.
"It was tasked with reviewing agreements and retrieving assets that were allegedly acquired through illegal means under the previous administration. Besides investigating the former president and his inner circle, the committee has also targeted and made accusations against foreign investors in Sudan, seizing their assets.
"Malaysia’s Petronas has been present in Sudan for more than 20 years and assisted the country in becoming an oil-exporting nation. The United States sanctions on Sudan as a terrorism-sponsoring country had posed significant challenges to foreign companies, including Petronas.
"Sources have said that other countries’ companies were being similarly targeted. Fu Hong Construction, a Chinese infrastructure firm, was alleged to have inflated the cost of projects. Similar actions were taken against the Pakistani-owned Grand Holiday Villa Ltd in Khartoum,” Daily Sabah reported.
On Thursday (Oct 7), Petronas claimed that its rights over the land and Petronas Complex in Khartoum, Sudan were obtained in accordance with rightful applicable laws.
Petronas said it has filed a request for arbitration at the International Centre for Settlement of Investment Disputes (ICSID) on the matter. ICSID is a unit under the World Bank Group.
Petronas said in a statement on Thursday the company has been jointly working with Malaysia's Ministry of Foreign Affairs to exercise all diplomatic channels with the authorities in Sudan to amicably resolve the issue.
"As there has been no positive development thus far, Petronas has filed a request for arbitration at the ICSID on the matter. As the legal process has commenced, Petronas is unable to provide further information on this matter,” Petronas said.