Datuk Husam Musa has confirmed that Kelantan will bring its oil royalty claims against Petronas to court.
KOTA BARU, March 1 — The PAS-controlled Kelantan state assembly, including three out of six Barisan Nasional assemblymen, today unanimously agreed to take the state’s oil royalty claims against Petronas to court.
The BN lawmakers’ support for Ayer Lanas assemblyman Abdullah Yaakub’s motion has undercut the federal government’s argument that Kelantan is not entitled to 5 per cent royalty under the Petroleum Development Act 1974.
The trio are state Opposition Leader Datuk Mohd Alwi Che Ahmad (BN-Kok Lanas), Mat Yusof Abdul Ghani (BN–Nenggiri) and Datuk Abdul Rashid Aziz (BN–Kuala Balah).
“Referring to the Act shows clearly that it provides for states that produce oil whether on land or at sea are entitled to cash payments or royalty,” Abdullah said when tabling the motion.
“So it is decided that the assembly gives the mandate to the State Executive Council to bring the oil royalty claim to court,” he told the state assembly this morning.
State speaker Nasharuddin Daud then called for a vote which all 38 PAS assemblymen and three out of six BN lawmakers supported.
However, Datuk Nozula Mat Diah (BN-Paloh) and Adhan Kechik (BN-Bukit Bunga) did not stand up to vote while their colleague Datuk Noorzahidi Omar (BN-Pengkalan Kubur) was not in the assembly when the vote was taken.
Mat Yusof was quoted by the Malaysiakini news portal as saying the BN lawmakers have revoked their support as the motion had included amendments. It is not known if their revocation has been accepted by the state assembly.
Petroleum Committee chairman Datuk Husam Musa said yesterday the state government decided to bring the matter to court as it was an issue that needed a thorough review.
He also said the state government also needed the state assembly’s support as the vesting deed signed between Kelantan and Petronas in 1975 for the 5 per cent oil royalty for the state and the same amount for the federal government had required the assembly’s approval.
However, he said yesterday he wasn’t sure if the assembly would discuss the issue when it met this morning.
“I don’t know, we wait and see first. The assembly sits tomorrow and the day after. I don’t have to discuss it now,” Husam had said.
Former Lord President Tun Salleh Abas last night gave a briefing on the issue. Others who were present included former officers from the Attorney-General’s Chambers including Tan Sri Abdul Aziz Abdul Rahman and former Petronas legal department chief Nik Saghir Mohd Nor.
Gua Musang MP Tengku Razaleigh Hamzah has clashed with his Umno party over the issue, saying the law was clear that Kelantan deserved the 5 per cent oil royalty and not goodwill payment of RM20 million proposed by the Najib Administration.
The federal government has already said it will disburse the money through its agencies, similar to its move in Terengganu when it suspended oil royalty payments in 1999 when PAS captured the oil-rich state. It has since reversed its decision in Terengganu after capturing the state in the 2004 general elections.
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