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Tuesday, August 7, 2012

'Sudden' oil royalty gesture greeted with caution


'Sudden' oil royalty gesture greeted with caution
An air of suspicion greeted news that BN Federal government has formed a special committee to work out a “fair” distribution of payments from petroleum revenue to the states of Pahang, Kelantan and Terengganu.
Kelantan Menteri Besar Tuan Guru Nik Abdul Aziz Nik Mat earlier revealed that prime minister Najib Razak requested the PAS-led administration to appoint its representative to discuss oil royalty payments to the state. This followed Gua Musang member of parliament Tengku Razaleigh Hamzah’s statement urging BN to find a solution to the stalemate surrounding Kelantan’s oil royalty before trying to capture the state at the coming polls.
Nik Aziz said such a committee should have existed long ago following the agreement on oil wealth under the Petroleum Development Act 1974.
“Why only now?” he asked, and said that the committee whose head is former chief judge Abdul Hamid Mohamad should finalise its findings within three months and not six months as proposed by Najib.
Najib said the special committee would determine whether states were eligible to royalty from petroleum revenue, as well as method and quantum involved.
Local and foreign legal experts, alongside representatives of Pahang, Kelantan and Terengganu state governments have been been invited to join the committee.
Nik Aziz said he the Sultan of Kelantan’s consent was being sought over the matter.
However, for Husam Musa, chairman of Kelantan’s Oil Royalty Action Committee, Najib’s latest gesture was a political ploy to temporarily quell anger ahead of the looming general election.
The PAS vice president pointed out that the exercise could turn out to be an empty promise if polls were called before the conclusion of the committee's probe.
“It could just end up as an academic exercise,” he told Harakahdaily.
“Why six months? Why not three? Why just before the election??” he questioned.
Husam further questioned why Najib did not adopt the same solution used in the case of Terengganu's demand for oil wealth, in which the Federal government reached an out-of-court settlement with the state which had taken Petronas to court.
He said the individuals behind the drafting of the PDA had agreed that Kelantan was eligible to royalty payments, naming Razaleigh, former Lord President Salleh Abbas and former Petronas advisor Nik Mohd Saghir.
In May 2011, Terengganu MB Ahmad Said said the state would receiving RM938 million as part of the five percent oil royalty payment in accordance with the 1975 agreement with the Federal government, also signed by Kelantan.
Husam stressed that Kelantan's legal fight against Petronas would go ahead, and demanded Najib to use the Terengganu formula as solution, as well as an apology from UMNO politicians for claiming Kelantan did not deserve the money.
Meanwhile, PAS information chief Tuan Ibrahim Tuan Man urged the people in Kelantan not to be over-excited over Najib's gesture.
“It's just a letter, and it doesn’t mean they will be paying. Even then, why should we be grateful to robbers who return out stolen wealth?" he asked.
Tuan Ibrahim also echoed the view that Najib was attempting to 'buy time' with the latest move.
PAS vice president Mahfuz Omar agreed, saying the special committee showed Najib's "panic mode" as elections approached.
-Harakahdaily

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