KUALA LUMPUR, Sept 29 – The Prime Minister has won the battle of wills with the Petronas board of directors over the appointment of his confidant to the board.
After being rebuffed by the board over the suitability of Omar Mustapa as a director on the grounds of an unpaid scholarship, Datuk Seri Najib Tun Razak wielded his power and ended the stalemate recently.
Under the Petroleum Development Act the PM has absolute discretion to appoint anyone to the board of directors. In May, he informed the board that he wished to nominate Omar – a former staff member when Najib was DPM and now key strategist.
The board disagreed. The standoff continued even after Najib followed up with a letter.
This public rebuff of the PM by the board did not go down well with Najib's inner circle and supporters in Umno. They reasoned that if Najib did not wield his authority, his friends and foes will interpret it as a sign of a pushover leader.
Several of them suggested that he read the riot act to Tan Sri Hassan Marican and other members of the board.
The more hawkish suggested the unthinkable: remove the hugely popular Hassan and send a stinging message that Najib should not be tested and disrespected by board of directors of any government-linked entity.
Najib did not go down that path but during separate meetings with Hassan and several members of the board recently, he made it clear that the question of appointing Omar was not up for negotiation.
Still, it is unclear what reception Omar is going to receive from the board and the fiercely independent and loyal Petronas workforce.
It is also unknown if Petronas advisor Tun Mahathir Mohamad, who was against Omar's appointment, has softened his stance after receiving a letter from the latter.
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