Husam: Petronas deal doesn't state 'goodwill payment' or 'royalty'

Senator Husam Musa has urged PAS to not cause confusion over the terminology used to describe oil revenue payments to Kelantan.

At a press conference today in Pasir Puteh, Kelantan, Husam said the contract between the Kelantan government and Petronas in 1975 only states "cash payment", not wang ehsan (goodwill money) or royalty.

"I hope PAS leaders stay calm and collected. What is written in the contract is 'cash payment'.

"The name doesn't matter. What is important is that there are payments (to the state government) for oil extraction," he said.

Husam, formerly with PAS, was a state executive councillor and one of the earliest proponents for the federal government to channel oil revenue money directly to the Kelantan government.

Although the federal government had made a payment of RM28 million last month, based on five percent of the production value, the Kelantan government said it was still eligible for "royalty".

Husam, who is now with Amanah, said there are four oil wells, which the Kelantan government claims ownership to, but only one of the four are not subjected to overlapping claims by Terengganu, Vietnam and Thailand.

He believed that the Kelantan government has legitimate claims to the other three areas and urged the state to discuss the matter with the federal government and Petronas.

"Hold proper discussions. That is the Malay way. Currently, they are making all sorts of accusations in an impolite way.

"What is important is RM28 million has been paid by the federal government. How is the state government going to use it for the people?" asked Husam. - Mkini