The PAS-led Kelantan government has appointed former Petronas chairperson Tengku Razaleigh Hamzah as the state government's representative in discussions on the oil royalty with the federal government.

State Committee on Financial Planning, Economy and Welfare chairperson Husam Musa said the decision was made at the state executive council (Exco) meeting chaired by Nik Aziz Nik Mat today.

tengku razaleigh speech 110310 02 He said the meeting also decided that Razaleigh, who is also Umno’s Gua Musang MP, to resolve the issue on the claim within four months beginning today.

"The official letter on the appointment will be sent to Razaleigh in the near future," he told reporters after the exco meeting.    

The Kelantan state government insisted that the federal government paid the oil royalty instead of the compassionate payment although according to the regulations, the state was not eligible for the royalty as the two oil wells which the Kelantan government claimed belonged to it, were located more than three nautical miles off the state's coastal waters.

The two oil wells are located 150 nautical miles off the Kelantan waters and the federal government had agreed to pay RM20 million compassionate fund to the people of Kelantan, which represented the first payment of five percent of the revenue from the two oil wells since 2008.

Husam said Razaleigh's appointment did not involve any payment from the state government.

Asked whether the Umno veteran leader accepted the appointment, Husam, who is also the state assemblyman for Salor, said the appointment was based on Razaleigh's agreement to be the mediator in resolving the oil royalty issue which had been dragging on between the state and federal governments.

- Bernama

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