KOTA BARU, Nov 18 – Kelantan wants the federal government to formulate an Oil Royalty Act taking into account the aspects of fundamental justice that will benefit everyone.
Kelantan Mentri Besar Datuk Nik Abdul Aziz Nik Mat said that petroleum, timber and minerals were natural resources that came from God and, as such, the states that had such resources had the right to own them.
He said that any dispute or misunderstanding arising from the oil royalty claim must take into account fundamental justice.
“Any settlement that ignores fundamental justice will lead to ill-feelings, oppression and cruelty that are despised by the people. Therefore, the existing Petroleum Act must be revamped to take into account fundamental justice instead of merely favouring one particular party,” Nik Abdul Aziz, who is also the PAS Spiritual Leader, said at a special media conference at his office, here today.
The Kelantan state government had earlier submitted an official letter to the federal government asking for the payment of oil royalty totalling RM1 billion since 2004, based on a report from the Statistics Department.
On Nov 4, Prime Minister Datuk Seri Najib Tun Razak announced that Kelantan would receive a “special payment” from the government, but not royalty, for the petroluem produced offshore through Petronas, beginning next year.
However, Kelantan was not satisfied with the special payment and the state has appointed a panel of lawyers to take the oil royalty claim to court based on the agreement between the state and federal governments in 1974. – Bernama
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