Sarawak PKR is demanding that the 20 percent oil and gas royalty be paid in cash to the Sarawak government, since this is the rightful entitlement of the state, its vice-chairperson See Chee How said.

“In principle, we will not agree to the payment of oil and gas royalty in the form of development grants.

“The federal and state governments must be clear about the distinction between these two. Oil and gas royalty our right to which we are entitled, while development grants are basically handouts from the federal government,” See said yesterday.

The Batu Lintang assemblyperson said this in response to Prime Minister Najib Abdul Razak, who told the gathering at the Gawai Dayak celebration in Miri on Monday that the federal government would consider the state’s request for higher oil and gas royalties.

The Sarawak state assembly recently passed a motion calling for royalty payment on the massive oil and gas harvested in the state by the federal government to be raised from the current five percent to 20 percent.

Najib said the federal government had no qualms in negotiating any matter with the state government over its interests.

“The federal government’s consideration is not only on the request for  higher royalties for oil and gas, but also for more funds for the state through other means,” he added.

See called for the Sarawak state assembly to be provided audited accounts of payments from the federal government so that it can be ensured higher oil and gas royalty payments are over and above the present development grants allocated to Sarawak.

“This is to ensure that the federal government will not make use of the development grants to gross over the rightful entitlement of Sarawak in the form of oil and gas royalties,” he said, adding that the royalty payments Sarawak has been receiving as since 1976 were “chicken feed”.

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