KUALA LUMPUR: Oil royalty payments to oil-producing states will be made in cash, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali (pic).
"The Prime Minister and government have agreed that cash payments are made to the oil-producing states of Kelantan, Terengganu, Sabah and Sarawak," he told reporters in Parliament on Tuesday (Oct 15).
He said this in wake of accusations from the Kelantan Mentri Besar Datuk Ahmad Yakob that oil royalty payments had not been made to the state.
Azmin said the process would involve Petronas making payments to the Finance Ministry, which would then channel the cash payments directly to the respective state governments.
Asked if the payments to Kelantan were part of the oil royalty or goodwill payment (wang eshan), Azmin said he was unsure as discussions on the 20% oil royalty payments were still ongoing.
On Tuesday, Ahmad had said that the state was paid RM15.75mil in a goodwill payment on Sept 18 and disputed Finance Minister Lim Guan Eng's claim that oil royalty payments had already been made to the state.
Meanwhile, when met in the Parliament lobby, Lim said there was no need to argue on the term with regards to the oil royalty payment made to Kelantan.
"I don't want to argue on what's the right term to use. Whatever payment made, it was already done and it was even paid earlier by the federal government," he said.
Lim also said that Putrajaya had approved a request of RM100mil from the Kelantan state government to pay for its operational and staff expenses.