PUTRAJAYA will pay the full oil royalty owed to Kelantan once the legal proceedings for the withdrawal of a suit by the state government are complete, said Economic Affairs Minister Azmin Ali.

Azmin said that the federal government has “fulfilled our promise that the oil royalty will be paid directly to the state government”.

“The Terengganu government has already received the full amount, and for Kelantan we have made partial payment because of this court case.

“In our discussion with the menteri besar this evening, the state government will begin the proceedings to withdraw the legal suit,” he said in Kelantan today.

He declined to give details on the amount, and said that Putrajaya would issue an official statement.

PAS-ruled Kelantan had initiated a suit against Petronas and the federal government in 2010, claiming that the national oil company had failed to make cash payments which rightfully belonged to Kelantan for petroleum won and obtained offshore since 1998.

The state government had sought an order that all arrears of cash payments be paid to Kelantan, on top of damages, interests, costs, and further relief deemed fit by the court.

However, in October last year, Kelantan Menteri Besar Ahmad Yakob announced that the state would withdraw the suit based on its confidence in Prime Minister Dr Mahathir Mohamad’s promise to pay oil royalty directly to Kelantan and Terengganu.

Earlier in his speech, Azmin announced several new projects for the state, declaring that Kelantan would not be left out of Putrajaya’s developmental plans simply because it was governed by an opposition party.

He also urged the state government to work with the federal government for the sake of the people.

“If we have confidence in the democratic system, then we must admit that the state government has its responsibility as does the federal government, towards the people, so that in the end, the people will benefit.” – March 7, 2019.