PAS-HELD Kelantan and Terengganu will receive oil royalties under the new Pakatan Harapan federal government, said Prime Minister Dr Mahathir Mohamad today.

“They will receive petroleum royalties after this. They will be rich,” he said in a dialogue session with representatives from PH party organs.

The issue of oil royalties for both states is a long-standing one, especially for Kelantan, which has been ruled by the Islamist party since 1990.

Kelantan, under the late menteri besar Nik Abdul Aziz Nik Mat, in 2010 sued the Barisan Nasional government for withholding 5% in petroleum royalties payable by national oil company Petronas to the state, which was in violation of the Petroleum Development Act 1974, Kelantan Petroleum Agreement and Kelantan Grant.

Terengganu had been receiving 5% in oil royalties when it was under BN rule, but this was halted for a term in 1999 – during Dr Mahathir’s administration – when PAS won the state in that year’s general election.

Terengganu’s PAS government then sued Petronas and the federal government, but withdrew the suit when BN wrested the state in 2004.

As part of PH’s election promises, Dr Mahathir has pledged to return oil royalties to both states. – May 18, 2018.