Kelantan executive councillor Husam Musa stated that the PAS-ruled state will continue to press for oil royalty despite the government's stand that it is only entitled to 'wang ehsan' (compassionate money).

pas muktamar 55 husam musa 050609 Husam, who was in Parliament to observe Second Finance Minister Nor Mohamed Yakcop wrap up the debate on the 2010 Supply Bill, said Kelantan Menteri Besar Nik Aziz Nik Mat would write to Prime Minister Najib Abdul Razak to push for this.

"I am sure the prime minister would agree to pay, he was only taking the first step to ease the pressure," he said.

The state representative asserted that the federal government could pay 'compassionate money' if it wanted to, but it must also pay royalty to Kelantan as well.

"Whatever they (the federal government) wants to spend for the state through their projects is still just charity... we would continue to pursue for royalty," he told reporters in Parliament.

Possibility of legal action

Last week, Najib told Parliament that beginning next year Kelantan would receive 'compassionate money' for the petroleum extracted off its shores.

He also said that the money cannot be considered as royalty because the petroleum was extracted beyond Kelantan's waters.

Najib added that the money would not be directly given to the state government but instead, channeled through development projects initiated by the federal government.

Kelantan has been demanding for royalty amounting to about RM1billion since 2004 for the petroleum extracted from the southern location that is beyond three nautical miles from the state's waters.

Meanwhile, Husam also said that Kelantan has engaged the expertise of a lawyer to look into the issue.

He said the state is seeking legal advice whether to file a suit to determine Kelantan's claim on oil royalty at an international court either in New York or Bangkok.

The state government is also looking into the option of filing a suit to declare the agreement between the state and national oil company Petronas, null and void.