The compassionate payment to Kelantan will be channelled through the Federal Development Department to implement projects in the state, Deputy Finance Minister Dr Awang Adek Hussin said.

He said the payment was a manifestation of the federal government's desire to help the people of Kelantan.

asli capital market summit 131107 awang adek "Kelantan people should be thankful of the decision," Awang Adek told reporters after receiving a key for a van for Bachok Umno division in Perupuk, Pasir Putih today.

On Thursday, Prime Minister Najib Razak announced that the government would pay compassionate fund to Kelantan from next year from the offshore oil production revenue starting next year.

Kelantan has said that the state should be paid with oil royalty instead and not a compassionate payment.

Awang Adek said that Kelantan had no right to receive oil royalty as the two oil wells were located 150 nautical miles from Kelantan water.

Don't politicise 'wang ehsan' issue

Meanwhile, Kelantan Umno chief Mustapa Mohamed told PAS not to politicise the issue of ‘wang ehsan’ to the state but be thankful instead to the federal government.

He said the federal government would stick to its decision to make the payment despite the Kelantan government threatening to sue it for oil royalty payment.

"The federal government did a comprehensive study including consulting the attorney-general before making the announcement (on the 'wang ehsan' payment).

"As such, there is no reason to politicise the issue," he said after meeting up with supporters of the Kelantan football team in Ayer Lanas today.

The Kelantan football team will be battling Negeri Sembilan in the final of the prestigious Malaysia Cup football tournament at the National Stadium in Bukit Jalil, Kuala Lumpur tonight.

- Bernama