Oil Royalties; Does the Federal Government Not Trust State Government Officers?

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PAS leaders have slammed the Barisan Nasional government over its recent comments on the payment of oil and gas royalties to Kelantan.

Mursyidul Am PAS (spiritual leader) Tuan Guru Datuk Nik Abdul Aziz Nik Mat said the state deserved its oil and gas royalty as other states had been receiving it.

“The royalty rightfully belongs to Kelantan. If other states like Sarawak, Sabah and Terengganu can receive their oil and gas royalties, why can’t Kelantan?,” he asked when met during PAS campaign trail at Surau Lama, Kampung Geting here today.

The former Kelantan Menteri Besar also claimed that the compensation given by the federal government had never reached the Kelantan government and wondered to whom the federal government gave it to before stating that he was sure it “was to someone else”.

Stressing that this was all Umno’s doing, Nik Aziz said that while oil and gas compensation payments go directly to other states, only in Kelantan does it go through the Federal Development Department.

“I would like to ask, why only in Kelantan does this happen? Does the federal government not trust our state government officers?

“The money does not come to me, of course. As per any federal government allocation, it goes through the state secretary and state finance officers. They are all graduates and very qualified.”

He called on Umno leaders to repent their sins by giving the state its due oil and gas royalties, reminding his political opponents that their “sins goes into the afterlife”.

When asked to comment on claims made by the federal government that it had paid oil and gas royalties to the state, Nik Aziz insisted that it had failed to do so.

“It (federal government) failed to pay because the state government did not receive it. Paying it to others is not considered payment

“If I owe you money, but I pay it off to someone else, does that count as settlement?”

IMG-20140914-WA0039Earlier, Kota Baru Member of Parliament Datuk Takiyuddin Hassan warned the federal government that it might face legal action if it continued to comment on the ongoing Kelantan oil and gas royalty issue.

“The issue involving royalty is still pending in court and it should not be discussed as it can be sub-judice and may lead to contempt.

“If the federal government continues to do so, the state government may be forced to reveal its data to deflect the accusations against us,” the Bunut Payong assemblyman said at the PAS election centre here today.

In response to Deputy Prime Minister Tan Sri Muhyiddin Yassin’s challenge, Takiyuddin, who is also PAS assistant secretary-general, said PAS would set up a special committee to investigate the oil and gas royalty payments to the state.

He, however, refused to comment further in respect to the ongoing court proceedings.

Takiyuddin added that despite that, PAS would be bringing this issue to the fore during the campaigning period at its daily ceramah.

“We will be talking about it, but not reveal full details on the matter. As long as we do that, it is fine.”

Yesterday, Deputy Prime Minister Tan Sri Muhyiddin Yassin challenged PAS to establish its own committee to investigate the alleged lack of oil and gas royalty payments to Kelantan amounting up to RM12 billion.

Stating that the federal government was willing to reveal the financial records involving oil revenues accumulated off Kelantan’s coast, the Deputy Prime Minister said that gesture was proof that the government was open to talks.

Kelantan’s oil royalty is an ongoing issue, with the state even taking Petronas to court over the matter, claiming the latter owed it RM800 million per annum since 2005.