Abdullah: Terengganu to manage the 5% oil royalty once again - The Star

By R.S.N. Murali

KUALA TERENGGANU: The Federal Government has agreed to revert the management of the five per cent oil royalty back to the state government.

The payment of oil royalty to the state stopped in 2000 when the opposition took control of the Terengganu.

Prime Minister Datuk Seri Abdullah Ahmad Badawi made the much-awaited announcement yesterday after a closed-door meeting with state Umno leaders and high-ranking Government officers at a hotel here yesterday.

“The handing over of the royalty will be done once a detailed summary on the matter, including the procedures of how the royalty should be channelled to the state’s coffer, is done.

“The Federal Government agreed today to return the royalty payment but we have to outline the procedures, measures and other particulars,” he said.

The issue of oil royalty came up when Mentri Besar Datuk Ahmad Said recently asked the Federal Government to hand over the management back to Terengganu in a bid to implement more people-oriented projects.

[More at http://thestar.com.my/news/story.asp?file=/2008/6/15/nation/21559181&sec=nation]