PUTRAJAYA has promised to pay oil royalties to the states, said Terengganu Menteri Besar Ahmad Shamsuri Mokhtar.

He said the government would also give the oil royalties directly to the state governments, unlike in the past when it was channelled to a federal agency.

“(For) now it will be at least 5% or the current rate,” said Ahmad Shamsuri after the National Finance Council meeting at the Finance Ministry today.

He said the oil royalties would be paid to the state governments regardless of whether they were PAS, Pakatan Harapan, or Barisan Nasional-governed states.

Also at the meeting were Prime Minister Dr Mahathir Mohamad, Deputy Prime Minister Dr Wan Azizah Wan Ismail, Finance Minister Lim Guan Eng, and Sabah and Sarawak Chief Ministers Abang Johari Tun Openg and Shafie Apdal.

Ahmad Shamsuri said the details of how the payments would be made would be decided later.

“But it is the federal government’s promise to channel the oil royalties back to the people,” he added.

He said it was crucial that the oil royalties were given directly to the state governments.

Before the elections, PH had promised to give 20% of oil royalties to Sabah and Sarawak, with other states given reasonable sums as royalties.

Under the Petroleum Development Act, states with natural gas or petroleum will be given 5% shares of oil revenues.

Previously, after PAS had taken Terengganu in 1999, the federal government converted the royalties to “wang ehsan” which was then channelled to the state via the federal development department. – June 7, 2018.