Former Petronas chairman Tengku Razaleigh Hamzah said today he was prepared to be a witness for the Kelantan PAS government should it pursue its demand for oil royalty from the federal government in court.     

The Gua Musang MP said he was making the offer because he was better informed of the matter as he was responsible for having established Petronas and formulated the Petroleum Development Act.     

"I can be a witness in the matter because the Petroleum Development Act in use is fair to the relevant state governments in terms of their claim (to oil royalty)," he told reporters after opening the general meeting of the Parent-Teacher Association of Sekolah Menengah Kebangsaan Chiku 2, near here.     

Tengku Razaleigh was commenting on a statement by Kelantan State Executive Councillor and chairman of the Action Committee on Oil Royalty Husam Musa that the Kelantan government would take the oil royalty dispute to court on Aug 30.     

The Kelantan PAS government is adamant that the federal government pay oil royalty and not compassionate funds although it has been pointed out that the state government was not entitled to oil royalty as the two oil wells said to be in Kelantan waters were located more than three nautical miles offshore.          

The federal government has so far distributed RM25 million in compassionate funds to the people of Kelantan.     

Tengku Razaleigh, who is also Gua Musang Umno Division chief, said the Petroleum Development Act gave the east coast states as well as Sabah and Sarawak the right to claim oil royalty even though oil wells were located outside their waters but near the states.  

- Bernama