Tengku Razaleigh Hamzah, The Edge
I see the Ministry of Information has taken out full page advertisements in the major Malay newspapers to argue that Kelantan has no right to oil payments under the Petroleum Development Act because the oil resources in question lie outside the 3 nautical mile limit that delimits state versus federal jurisdictions. The advertisement fails to point out that almost all the oil found in Malaysia is located more than 3 nautical miles offshore, and Petronas has nevertheless been making oil payments to the states.
By the argument deployed in the advertisement, Terengganu, Sabah and Sarawak too are not entitled to the “cash payments” of 5% of profit oil (commonly and a little inaccurately referred to as “oil royalties”). Everything is at the arbitrary behest of the Federal Government.
Yet last year, according to its annual report, Petronas paid out RM6.2 billion in petroleum cash payments, with RM3 billion to Terengganu, RM2.3 billion to Sarawak and RM0.9 billion to Sabah. One wonders what basis this payment was made on since none of this was for petroleum found within 3 nautical miles offshore of these states. The argument for depriving Kelantan of 5% cash payments on the basis of its petroleum resources being found beyond 3 nautical miles is an insult to the intelligence.
I have spoken and written at length on this issue and had been reluctant to say more on it. Moreover, as a member of the ruling party I am embarrassed to have to belabour elementary points against the government. This information campaign, whether through a leaflet campaign in the schools or through newspaper advertisements paid for with taxpayer money, implies either culpable stupidity or gross deceitfulness on the part of agents of the Federal Government. I had hoped to avoid that implication.
The government’s advertisement also exhumes a ten year old mis-quotation in a government newspaper to allege that I once denied that Terengganu had any right to the 5% cash payment. I said no such thing. If the government media is to be believed I also once converted to Christianity by wearing Kadazan headgear just in time to be exposed amidst a General Election campaign. Why does the government rely on a ten year old misquotation? Well, these days we have our own blogs.
In fact, as a BN backbencher at the time I opposed the Federal Government’s intervention to prevent Petronas from making oil payments to Terengganu and the move to channel those funds instead into “wang ihsan”. Tun Salleh Abbas and I offered ourselves as witnesses to the Terengganu state government in the suit it filed against the Federal government to recover those oil payments. Between the 2000 and 2009, RM15.8 billion was paid out through the legal black hole of wang ihsan, not to the rightful party as specified under the Petroleum Development Act, which is the state government’s consolidated fund, but to agencies more amenable to vested interests linked to the central government. The outcome of that spending is the Monsoon Cup, a Crystal Mosque in which it is impossible to pray, a leaking swimming pool, a collapsed bridge and a collapsed stadium. The people of Terengganu remain poor while Billions have been paid out in their name.
