PM Mahathir calls g-77 grouping bulky and unwieldy

PM Mahathir calls g-77 grouping bulky and unwieldy

KUALA LUMPUR (Agencies): Malaysia's outspoken Prime Minister
Mahathir Mohamad on Thursday criticized the Group of 77
developing countries, calling it bulky and unwieldy.

Mahathir's rare criticism of developing countries came after
his trip to the United States where there was a poor turn-out for
a meeting of Group of 77, or G-77, leaders in New York.

Mahathir, who has had prickly relations with the West ever
since he came to power in 1981, was critical of the need for
decision-making by consensus among all 133 of the G-77 member
states.

"In the G-77, everything must be done through consensus by the
133 heads of government," the state-run Bernama news agency
quoted Mahathir as telling reporters upon his return to Malaysia.

"Obviously, it is bulky and unwieldy," he said.

The G-77 was originally established with 77 members to help
promote the views of developing countries at the UN Conference on
Trade and Development.

It includes developing country heavyweights such as China,
India, South Africa, Nigeria and Indonesia.

Mahathir said it was more difficult for the G-77 to conduct
meetings due its size compared with the Group of Eight rich
countries.

Malaysian newspapers said the poor turn-out of leaders at the
New York meeting was due to short notice.

Initially billed as a Special G-77 Summit, to take advantage
of the gathering of world leaders for the UN Millennium Summit,
the G-77 gathering was later downgraded to a special meeting,
then a meeting and finally a briefing.

"Except for 'a few' heads of state/government, most of those
who turned up for the meeting were senior officials," the Star
newspaper reported.

Meanwhile, on domestic matter, Mahathir on Thursday declared
that a Malaysian state ruled by the opposition Islamic party had
no right to receive oil royalty payments from the federal
government.

"This is because the oil is not from Terengganu (state). It is
offshore oil and as such under the law it belongs to the federal
government," Mahathir was quoted as saying by the national
Bernama news agency.

Government and opposition leaders have locked horns this week
over millions of dollars in oil royalty payments to Terengganu
which federal authorities will no longer allow the state
government led by the Pan-Malaysian Islamic Party, or PAS, to
administer.

PAS wrested Terengganu from Mahathir's United Malays National
Organization in elections last November as its influence grew in
Malaysian politics. The new state government has repeatedly
accused Mahathir's federal government of trying to starve it of
development funds.

On Tuesday, the Finance Ministry announced that the government
would cease to channel annual oil royalty payments to
Terengganu's state leaders. Instead, a federal-level committee
would allocate the funds to build roads and provide low-cost
housing for fishermen in Terengganu.

The payments, made annually by the federal government since
1978, usually equal 5 percent of Terengganu's oil and gas
production value. This year's payment is expected to total about
810 million ringgit (US$213 million). Terengganu, Sabah and
Sarawak are Malaysia's oil-producing states. All three have so
far received royalty.

The government's decision is seen as a huge financial blow to
PAS, which alleges that its annual administration budget in
Terengganu is less than 500 million ringgit ($132 million).

"It is not royalty. It is a special payment that we give
Terengganu in view of it being the poorest state in the past, but
things have changed now," Mahathir told reporters on Thursday.

Opposition leaders say the action violates an agreement
between Terengganu and the national oil company, Petronas.