Parti Amanah Negara vice-president Husam Musa has accused the Kelantan government of washing its hands of an illegal fund collection scheme.

Husam was unsatisfied with the explanation of Kelantan Menteri Besar Ahmad Yakob on the state government engaging carbon credit company Climate Protectors Sdn Bhd, which happened to also collect deposits in exchange for cryptocurrency without approval, and was placed Bank Negara Malaysia's the financial consumer alert list.

Ahmad Yakob had said the fund collection was unrelated to the Kelantan government and urged members of the public who have given their money to lodge police reports.

"The state government had acknowledged that the company it chose had violated the law.

"It also tried to wash its hands of the matter by not lodging its own police report against the company, which had influenced the public (to invest) by promoting the one million hectares of forest reserve the Kelantan government had assigned to it (for carbon trading)," he said.

Husam said despite the legitimacy of the company's activities coming into question, Ahmad failed to address concerns about how Climate Protector was awarded the task to determine the carbon stock of forest reserves in Kelantan for carbon trading purposes.

"There was no explanation whatsoever on the criteria of how the company was chosen, be it based on its financial strength, expertise, experience or track record," he said.

Husam urged the Kelantan government to disclose the agreement it had signed with Climate Protector.

"I am worried the (state) government is bound without an exit clause and the company will have a free hand," he said.

In February, Natural Resources and Environment Minister Wan Junaidi Tuanku Jaafar had also criticised the Kelantan government's carbon trading efforts, stating that the mechanism was not in line with the United Nations framework for the convention on climate change.

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