MB Seeks To Have Terengganu Manage Oil Royalty - Bernama

KUALA TERENGGANU, April 20 (Bernama) -- Terengganu Menteri Besar Datuk Ahmad Said Sunday asked the federal government to hand over to the state government the management of the latter's oil royalty which amounts to nearly RM1 billion a year.

He said the time had come for the annual five per cent oil royalty, which was withdrawn in 1999 when PAS captured the state and restored later as the Federal Government Special Fund, to be fully managed by the state government to carry out more development projects.

"We want to be frank. We expect the (royalty) money to be given to us," he told reporters here.

After PAS took over the administration of Terengganu following the 1999 general election, the Finance Ministry announced on Sept 5 2000 that the five per cent oil royalty would be channelled directly to the people through development projects and no longer given to the state government.

Ahmad said the money, via the special fund, was channelled directly to the implementing ministries without any consultation with the state government, resulting in many projects failing to provide the desired impact as they had not taken into account the people's needs.

[More at http://www.bernama.com.my/bernama/v3/news.php?id=328039]