PKR secretary-general Saifuddin Nasution today said that the out-of-court settlement for the 11-year-old Terengganu oil royalty dispute does not resolve the matter.

“This is because the new government may not be bound by the settlement terms should there be a shift in politics and the BN Terengganu government falls in the next general election,” he said.

He added that political dynamics are important in this matter as the oil royalty issue is linked to  “Umno/BN’s political grudge after they lost in Terengganu from 1999 to 2004”.

The Edge Financial Daily yesterday reported that the Terengganu government withdrew its suit against the federal government and Petronas on March 21.

The PAS-Terengganu government filed the suit 11 years ago.

The oil royalty payments - renamed ‘wang ehsan’ (goodwill payment) - were channeled directly to BN-controlled agencies for disbursement to the state starting from 2000.  

However, even after BN had recaptured Terengganu in 2004, the federal government did not restore oil royalty payments to the state government.

umno supreme council special meeting 260809 ahmad said The payments were only restored after Ahmad Said ( left ) took over the menteri besar’s post in March 2008, with the backing of the Terengganu sultan.

Saifuddin said the state government is also obliged to disclose the terms of the out-of-court settlement, including the total payment made to Terengganu, to ensure that the rakyat has not been shortchanged.

He added that the Terengganu government also needs to disclose the total amount of oil royalty and compassionate funds obtained by the state from 2001 to 2010.

“This is in view of the fact that oil prices have gone up from US$20 per barrel to US$100 per barrel,” he said.

He also said that the state must show which account the funds were banked into.

“Was it to a consolidated fund or was it used directly to pay for the state projects like the Monsoon Cup, Masjid Kristal, etc,” he said.

PKR to hold gala dinner for GE fund

Meanwhile, PKR announced that it will hold a fundraising dinner for the general election on May 4 at the One World Hotel, Petaling Jaya.

To date, the party has sold half of the 160 tables, which are going for RM10,000, RM5,000 and RM3,000 per table.

“This shows the rakyat are ready to accept PKR and its Pakatan Rakyat comrades PKR and DAP as a government-in-waiting,” said organising committee chief Dr Tan Kee Kwong.

The dinner, expected to raise between RM1.5 million to RM2 million, will be hosted by prominent theatre performer Jo Kukathas and will feature performances by PKR supporters and members.