PAS wants Putrajaya to pay up RM1b per year for oil royalty

PAS deputy president Datuk Tuan Ibrahim Tuan Man speaks during a press conference in Parliament October 16, 2019. — Picture by Firdaus Latif
PAS deputy president Datuk Tuan Ibrahim Tuan Man speaks during a press conference in Parliament October 16, 2019. — Picture by Firdaus Latif

KUALA LUMPUR, Oct 16 ― PAS MPs from Kelantan today demanded Pakatan Harapan (PH) government keep their promise in according the state at least 5 per cent of oil royalty averaging approximately RM1 billion annually.

Pengkalan Chepa MP Ahmad Marzuk Shaary said this is based on the figures given to the Kelantan government by the state Economic Planning Unit (UPEN) and “trusted sources”.

“We have four oil fields that we shared 50-50 with Thailand.

“Based on the output, five per cent of it we should receive on average about RM 1 billion per year,” he told a press conference in Parliament today.

The press conference was led by Kubang Kerian MP and PAS deputy president Datuk Tuan Ibrahim Tuan Man, who expressed disappointment over Finance Minister Lim Guan Eng insistence to pay only RM15 million advance payment last month and another RM28 million for Kelantan’s oil.

Under the Petroleum Act 1974, state oil producer Petronas will enter agreement with state government and pay them 5 per cent  of the oil production.

Tuan Ibrahim said PAS MPs will take the issue during the debate to force Lim to reveal the exact output and figures for Kelantan oil production to make their case.

“We are disappointed with the statement and we demand the finance minister to keep his promise to pay all over more than RM1 billion per year to Kelantan,” he said.

Yesterday, Kelantan MB Datuk Ahmad Yakob told his state assembly that Kelantan only received RM15.7 million in goodwill payments (wang ehsan) on September 17.

Ahmad was responding Finance Minister Lim Guan Eng’s remark on Monday that royalty payment had been made last month on Prime Minister Tun Dr Mahathir Mohamad’s instructions.

Economic Affairs Minister Datuk Seri Azmin Ali said the federal government has maintained the existing method for oil royalty payments to Kelantan though he did not explain whether it is royalty payment or not.

Lim then said he did not want to fight over the terms Wang Ehsan with Kelantan and PAS saying that PH government has always provided Kelantan with what they need including emergency funds to pay the state’s civil servants’ salaries earlier this year.

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