PAS claims Najib blundered in justifying ‘goodwill payment’

By Syed Jaymal Zahiid

KUALA LUMPUR, Nov 5 — Prime Minister Datuk Seri Najib Razak may have made a blunder when he claimed that Kelantan has no right to ask for royalty given that oil was extracted beyond the state’s waters in Parliament yesterday.

Najib had told Parliament that Kelantan could only demand for royalty if oil was extracted within three nautical miles of its coastline.

But PAS leaders said today that this meant Sabah and Sarawak, where oil is extracted beyond their territorial waters, have not been receiving royalties for its oil but “goodwill payment”, similar to both Kelantan and Terengganu.

“This means that all this while these two states have been receiving goodwill payment for its oil and not royalty despite Petronas’ financial report which clearly states that Sabah and Sarawak have been receiving royalty,” Kuala Krai PAS lawmaker Dr Hatta Ramli told a press conference in Parliament.

“This also means that oil profit is distributed according to the whims and fancy of the federal government and Section 144 of the National Petroleum Act which stipulates that 50 per cent of oil profit be given to oil producing states is obsolete,” he added.

Shah Alam PAS parliamentarian Khalid Samad said the paradoxical interpretation by Najib has dangerous repercussions as the Barisan Nasional (BN) Federal Government had the sole power to decide if oil-producing states can reap profits from its own resources.

Khalid added that leaders representing Sabahans and Sarawakians had failed to defend what is rightfully theirs.

He urged them to press Najib now for a clear stand on this matter.

Kelantan, ruled by PAS since 1990, began seeking the oil royalty recently although the Cakerawala gas field began production in January 2005.

The entire 7,250-sq-km area in the Gulf of Thailand, in the oil-rich South China Sea, is called the Malaysia-Thailand Joint Development Area (JDA). The JDA was created as an interim measure to exploit the natural resources in the seabed or continental shelf claimed by the two countries, with the proceeds shared equally.

Najib had announced yesterday that Kelantan would be receiving goodwill payment for its oil instead of royalty and PAS leaders have blasted this and said the move was akin to calling the people of Kelantan “beggars.”

 

 

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