The Terengganu state government was today told that it did not have any rights over revenues of oil rigged off its shores during the first day of its oil royalty suit against the Barisan Nasional government.

"The state of Terengganu, not being a sovereign state, as a matter of international law, had no rights in the natural resources of the continental shelf at any time prior to joining the Federation of Malaya and/or Malaysia," said Petronas legal counsel Cecil Abraham.

He was making his submission to Kuala Lumpur High Court judge Arifin Zakaria that the Terengganu state government did not have any right to oil found in areas more than three nautical miles away from its coast.

"As a matter of law, the Terengganu state government is not entitled to payment from petroleum won and saved offshore," he said.

The legal wrangle emerged when the federal government proposed in Sept 2000 to pay wang ehsan (goodwill money) instead of oil royalty to the state government. The proposal meant that the revenue would be diverted from the state coffer to federal agencies.

The move followed BN's loss of the Terengganu state to opposition PAS in the 1999 general elections.

Agreement revoked

The Terengganu state government is contesting the move which it said reneged on an agreement made in March 1975 in which the Federal government agreed to pay the Terengganu state government a five percent royalty of its total revenues from oil extracted off its coast.

Arifin, presiding over a two-day preliminary hearing, was also told that witnesses need not be called as the facts were sufficient enough to prove that the Terengganu state government did not have a strong case.

"There is no necessity for witnesses to testify as the facts presented are decisive enough," Cecil said.

The court room was filled to capacity with PAS supporters and leaders.

Speaking to malaysiakini later, PAS vice-president Dr Mustapha Ali, who is also Terengganu's development, economy, petroleum, industry and human resources executive councillor, likened the case to be the 'trial of the century' for the party.

Other party leaders present include central committee member Dr Mohd Hatta Md Ramli.

Overseeing the case on behalf of PAS is former Lord President of the judiciary Tun Mohd Salleh Abas who is also a PAS state assemblyperson in Jertih and state exco member.

Assisting Abraham are RS Nathan and Rishwan Singh. The government is represented by senior federal counsels Azahar Mohamed, Mary Lim and Azizah Nawawi.

The Terengganu state government is represented by Tommy Thomas and S Selvaratnam.

The hearing continues tomorrow.