Nearly RM1b petroleum ‘goodwill money’ paid to Kelantan, Terengganu - ministry

 

The federal government has channelled nearly RM1 billion in wang ehsan (goodwill money) last year to the Kelantan and Terengganu governments last year, according to the Finance Ministry.

This comprises RM786 million for Terengganu and RM200 million for Kelantan for petroleum extracted off the coasts of the two states.

In addition, the ministry said in its statement today that it has paid goodwill money amounting to RM172.3 million to Terengganu and RM58.6 million to Kelantan for the two state’s emolument commitments, as well as RM103.1 million for Terengganu’s obligations to its contractors.

“Any remaining goodwill money will still be used for Terengganu and Kelantan through projects or pro-rakyat programmes such as poverty eradication programmes or basic infrastructure projects for the well-being of the people in these states,” the ministry said.

The statement came after several Terengganu representatives claimed that the payments had not been made.

Last month, Sinar Harian quoted Terengganu Menteri Besar Ahmad Samsuri Mokhtar claiming that the federal government owes it RM600 million in unpaid “oil royalties”, which in turn, disrupted the state’s development plans.

Terengganu Menteri Besar Ahmad Samsuri Mokhtar

Earlier today, PAS mouthpiece Harakah quoted Bandar assemblyperson Ahmad Shah Muhamed expressing dismay that the payment is being made in a piecemeal fashion to meet certain commitments like salaries.

It also quoted Hulu Terengganu assemblyperson Rosol Wahid accusing Putrajaya of shortchanging Terengganu and looking for excuses to victimise its people.

Equitable in handling grants

Meanwhile, the Finance Ministry said the Madani government is fair and equitable in handing grants and allocations to all states, which are paid simultaneously to all states each month.

“The government is committed to ensuring that goodwill money is specifically intended for the benefit of Terengganu and Kelantan, prioritising expenditure that truly helps the people of Terengganu and Kelantan.

“The government is always open to discussion and suggestions from the Terengganu and Kelantan state governments regarding the utilisation of goodwill money so it directly benefits the people of Terengganu and Kelantan,” said Prime Minister Anwar Ibrahim, who is also finance minister I.

The confrontation between successive federal administrations and the governments of Kelantan and Terengganu over oil payments have been a longstanding issue.

Kelantan and Terengganu have asserted that they are entitled to oil royalty payments for petroleum extracted off its shores, but Putrajaya argued that they are not eligible because the oilfields lie more than three nautical miles beyond their shores.

The Territorial Sea Act 2012 stakes a 12 nautical mile maritime claim, with exceptions such as petroleum mining where the limit is only three nautical miles.

The federal government, nevertheless, pays Kelantan and Terengganu goodwill money based on their oil production, while repeatedly stating it is not legally obligated to do so. - Mkini