Petronas directed to answer claims over oil royalty

(The Star) – The Cabinet has directed Petronas to answer to claims that the Federal Government is cheating Kelantan out of its so called entitled oil royalty.

Deputy Prime Minister Tan Sri Muhiyiddin Yassin said Petronas had been given 48 hours to clarify the allegations made by state PAS deputy commissioner II Datuk Husam Musa.

Rebutting Husam’s arguments, Muhyiddin said PAS had conveniently twisted facts to mislead voters in the Manek Urai by-election and the Federal Government should confront the lies.

“From what I gather, the offshore areas are outside state boundaries and belong to the federal administration.

“Furthermore, most of the Petronas profits are re-channelled back to the Government.

“They provide about RM20bil to RM30bil per annum for us to bring development to the entire country. So, either directly or indirectly, Kelantan benefits,” Muhiyiddin said when campaigning at the Peria area.

He also directed the southern Kelantan Development Authority (Kesedar) to answer to all the alleged lies spread by PAS.

“Kesedar must list out all the roads, bridges and other infrastructure they have completed in the past few years.” he said.

“If not for Kesedar, the poverty level in the southern part of Kelantan would have been even higher.”