TUMPAT, Sept 14 — Kelantan Barisan Nasional (BN) chairman Datuk Seri Mustapa Mohamed today challenged the PAS-led state government to show proof for the oil royalty claim bandied about by the party.
"The state government claimed that the Federal Government had denied their right to receive the oil royalty. This is a big lie. They have no right.
"We challenge them to show proof that the Federal Government must pay RM12 billion in oil royalties to Kelantan," he said during a political talk in Tebing here, tonight.
Also present were Umno Information chief Datuk Ahmad Maslan and Kok Lanas assemblyman Md Alwi Che Ahmad.
The Finance Ministry in a statement yesterday, said that the Federal Government stressed that based on current laws, the Kelantan government, like other states in Peninsular Malaysia, did not have any right on the five per cent cash payment from the petroleum revenue acquired from the waters, more than three nautical miles from the point of low tide or state coast line.
However, the statement said beginning 2015, the Kelantan Islamic Affairs and Malay Customs Council would distribute compassionate aid through the compassionate aid programme, together with the Kelantan Federal Development Department at a rate of 50:50, up to a maximum of RM25 million per agency.
This was an interim measure until a more comprehensive solution was implemented by the Federal Government, once the claims made by the Kelantan government for petroleum revenue were decided by the courts.
Meanwhile, Mustapa also refuted the state government's allegation that it had been marginalised by the Federal Government in terms of development.
"The Federal Government has channeled over RM590 million to Kelantan between 2005 and 2013, except in 2008, to cover for the state government's deficit budget.
"Besides, RM239 million had also been spent by the Federal Government to develop Tunjong, including to establish its Rural Transformation Centre and the Federal Government Complex in the area," he said. — Bernama