Minister: K'tan received RM400m petroleum money in last two years

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Minister: K'tan received RM400m petroleum money in last two years
Minister: K'tan received RM400m petroleum money in last two years

The Kelantan government has received an allocation of RM400 million from oil income for the years 2020 and 2021, according to Finance Minister Tengku Zafrul Abdul Aziz.

He said the amount took into account five percent from the output of oil rigs located close to the state.

"Most importantly, the direct allocation prior to 2019 was RM28 million, and under the current government, we channelled RM200 million each in 2020 and 2021 to Kelantan or equal to five percent. We did not take a single sen.

Zafrul said this during a question and answer session at a briefing with Kelantan civil servants in Kompleks Kota Darulnaim, Kota Bharu, today.

At a press conference later, the minister, however, said he was unable to comment on whether the allocation was in the form of royalties or a goodwill payment, as it involves a legal matter.

"That is up to the law, I can't answer that. I just focus on the allocation," he said.

Further, Zafrul pointed out that the present federal administration did not make any deductions for payment of state debts from the five percent allocation.

"Before this, what was distributed will be deducted. That is why the amount channelled in 2019 was only RM28 million. Under the present government, payment was made directly to the state, and 100 percent will be distributed.

"With that, the amount has increased manyfold from RM28 million. Last year was RM200 million, and the year before that was RM200 million, depending on current petroleum income," said the minister.

Last November, Kelantan Menteri Besar Ahmad Yakob urged the federal government to clarify Zafrul's statement in Parliament that Petronas will not be paying the state any royalty for its petroleum.

This follows Zafrul's statement that the federal government will only channel goodwill payment for petroleum produced in the waters near Kelantan.

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