IN MAJOR BOOST FOR STATES, DR M PLEDGES TO PAY ‘AT LEAST 5% OIL ROYALTIES DIRECT TO STATE GOVTS’ INSTEAD OF TO FEDERAL AGENCIES, SAYS TERENGGANU MB

PUTRAJAYA: Terengganu Mentri Besar Dr Ahmad Samsuri Mokhtar said the federal government will be channeling at least 5% in oil royalties directly to the state governments’ coffers.

“Before this, it was channeled to the federal development agencies in the states.

“But now Prime Minister Tun Dr Mahathir Mohamad has pledged to send the money directly to the state governments which includes Terengganu,” he told reporters after attending the National Finance Council meeting chaired by the premier, here today.

Also present were Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail, Finance Minister Lim Guan Eng, Chief Secretary to the Government Tan Sri Dr Ali Hamsa, Auditor-General Tan Sri Madinah Mohamad, as well as all Mentri Besars and Chief Ministers.

The channeling of oil royalties, Ahmad Samsuri said was being done by the federal government irrespective of the state governments’ political affiliations.

Along with Terengganu, the states involved with the distribution of oil royalties include Kelantan, Sarawak and Sabah.

At present Sabah and Sarawak receive 5% oil royalties, while Terengganu has not received oil royalties since 2000.

Kelantan has been receiving “wang ehsan” (compassionate payment) in lieu of oil royalties since 2010.

When asked whether the Terengganu government will demand a higher percentage in oil royalties, he said the direct channeling of funds to the state government mattered more than the amount at the moment.

“Further details on when will the funds be channeled will be discussed at a later date,” he added.

Ahmad Samsuri also thanked the federal government for providing RM100,000 allocation to Opposition MPs on top of the RM200,000 allocation for parliamentary service centres.

“Even though the amount is lesser, we appreciate the gesture by Pakatan Harapan.

“The allocation for (Opposition MPs) is something better than before when there was zero allocation,” he said.

When asked if the Terengganu state government would provide allocation to the opposition state assemblymen, Ahmad Samsuri said he would have to look into the state’s financial position first before making any decision on it.

THE SUN DAILY