Najib – act on Nik Aziz’s initiative and restore proper Federal-Kelantan State government relations starting with RM1 billion oil royalties payment to Kelantan


The Prime Minister, Datuk Seri Najib Razak should act on the initiative of the Kelantan Mentri Besar Datuk Nik Abdul Aziz Nik Mat’s initiative and restore proper and just Federal-Kelantan state government relations based on justice and fair play to the people of Kelantan uninfluenced by party differences between the Federal and state governments – and in line with Najib’s 1Malaysia motto.

Two days ago, the Kelantan Mentri Besar and the Minister for International Trade and Industry and Kelantan Umno liaison chief, Datuk Mustapha Mohamad jointly kicked off a programme to promote tourism in Kelantan.

At the function, Mustapa said:

“We may be from different political parties, but there is no reason why we cannot come together on matters that benefit the Kelantan people.”

This is the proper and correct basis that should infuse and inform the relationship between the Federal government and all the state governments, even those which are ruled by Pakatan Rakyat state governments.

As a Malaysian, I will be the first to applaud the relationship between the Federal government and the state governments, especially those run by different political parties or coalitions, return to an even keel and healthy level as intended by the Federal Constitution and the founding fathers of the nation.

For a start, the Cabinet should on Wednesday acknowledge as a matter of principle that the Kelantan state government is owed RM1 billion in oil royalties, especially after the public admission by Tengku Razaleigh Hamzah, the founding chairman of Petronas and CEO who signed the vesting deed agreement in 1974 providing for Kelantan’s entitlement to five per cent of any revenue derived from hydrocarbon deposits found on or offshore of the state.

As Razaleigh told Malaysian Insider: “If I am chairman still of Petronas, I will pay without all the fuss. And I feel all the more it should be paid because I signed the agreement! There is no two ways about it. It must be paid.”

The Petronas vesting deed agreement was approved by Tun Razak in 1974 and it is only right that the present Prime Minister should restore the true meaning of his father’s legacy, with the Federal Government paying the Kelantan State Government RM1 billion worth of oil royalties due to them since 2004.

It is important that proper Federal-State government relations be maintained, uninfluenced by political differences arising from different parties and coalitions running them – or the greatest casualty will be the Malaysian Constitution as well as the 1Malaysia concept advocated by Najib.

The problem with the five-month long Perak constitutional crisis arising from the unethical, undemocratic, illegal and unconstitutional power grab is because this important principle of proper, correct, just and fair Federal-State government relationships between the Barisan Nasional at the national level and the Pakatan Rakyat state government in Perak had been violated.

This is why the immediate dissolution of the Perak state assembly to hold general elections is paramount to restore a constitutional, correct, just and proper Federal-state government relationship in Perak.

(Speech at the lunch of Perak DAP MPs and State Assembly members at MP Steamboat Restaurant, Ipoh on Sunday, 26th July 2009 at 2 pm)

  1. #1 by SpeakUp on Sunday, 26 July 2009 - 5:39 pm

    Mustapa is a good man and has always been since he was brought into the lime light circa ’98. Najib is a different man. He will say, “You can pry it from my cold dead hands!”

  2. #2 by All For The Road on Sunday, 26 July 2009 - 5:40 pm

    Petronas is supposed to come out with a statement on the oil royalty.

    Where is the official statement?

  3. #3 by SpeakUp on Sunday, 26 July 2009 - 5:48 pm

    Still trying to figure out what to say … hahahahaa … remember they are only answerable to the PM, that is how it was legally set up.

  4. #4 by Bigjoe on Sunday, 26 July 2009 - 6:51 pm

    When Terengganu oil royalty was taken away, the PAS govt then just did not know what they were doing. I advise PAS to hire a tort lawyer to help. They should sue Petronas in London or US where Petronas has interest and take their assets overseas…

    They have no chance locally…

  5. #5 by SpeakUp on Sunday, 26 July 2009 - 6:56 pm

    BigJoe … tort is for a civil wrong that is not contractual in nature such as negligence, trespass, personal injury or nuisance etc. Also, you also cannot sue someone in an overseas court if the cause of action happened in Malaysia.

  6. #6 by k1980 on Sunday, 26 July 2009 - 8:07 pm

    The RM1 billion in oil royalties owed to Kelantan will be paid the moment BN takes over that state. That is money politics in its worst form, but of course MACC will not investigate because it takes orders from Najid.

  7. #7 by limkamput on Sunday, 26 July 2009 - 9:14 pm

    SpeakUp :BigJoe … tort is for a civil wrong that is not contractual in nature such as negligence, trespass, personal injury or nuisance etc. Also, you also cannot sue someone in an overseas court if the cause of action happened in Malaysia.

    Hmmm, coming from someone who said there is still jury trial in Malaysia for murder cases. I think we have to be circumspect in whatever that comes out from this loose cannon.

  8. #8 by Onlooker Politics on Sunday, 26 July 2009 - 9:23 pm

    “The Petronas vesting deed agreement was approved by Tun Razak in 1974 and it is only right that the present Prime Minister should restore the true meaning of his father’s legacy, with the Federal Government paying the Kelantan State Government RM1 billion worth of oil royalties due to them since 2004.” (Lim Kit Siang)

    The Menteri Besar of Kelantan, Nik Aziz, should take this matter to a high court in Kelantan if Najib refuses to pay the Kelantan State Government the oil royalties due to the latter. Let’s see how the High Court Judge will say in a dispute which involves the Federal Government and the State Government.

    I believe that in Malaysia the Prime Minister is not the only person who can exert influence on the Judicial court system. The State Ruler will also have some say in the judicial appointment, through the meeting of the Conference of the Rulers!

  9. #9 by k1980 on Sunday, 26 July 2009 - 9:23 pm

    The recalcitrant BN regime—- corrupt, opaque and authoritarian—– has failed on every level and does not deserve to survive. At some point it will certainly collapse.

  10. #10 by the reds on Sunday, 26 July 2009 - 9:49 pm

    Najib is not stupid. Don’t expect him to pay.

  11. #11 by elvie ho on Sunday, 26 July 2009 - 11:36 pm

    BN has already pay part of the oil royalty in transport allowance,special allocation for manek urai and the rest as allowance for police,election commision workers plus men in orange t shirt hanging around voting booth

  12. #12 by House Victim on Monday, 27 July 2009 - 1:41 am

    “SpeakUp on July 26th, 2009 18:56”
    1. When oil is taken without paying “Loyalty”, should it be considered as “Piracy”? Therefore, should the “oil” and its subsequent products be considered as stolen goods that should be refrained from trading?

    2. Under this circumstances, Kelantan can at least ask for a Court Injunction to prohibit Petronas on trading such oil in any foreign country. When it is done in any EC country, the Injunction can be valid for all EC countries.

    I believe Bigloe raised a Good Point!
    Similar tactic should be done on other “wrong Doings” of BN!!

  13. #13 by frankyapp on Monday, 27 July 2009 - 7:20 am

    On what ground,the Umno/Bn government denied the rightful Kelantan people’s of their devolopment fund derived from Protronas.The Kelantanese are malaysian who should enjoyed equal treatment like any other malaysian who are residents of the other states within the country irrespective of who controls the state government ie Umno/BN or PR. What’s Umno/Bn doing is like a kind of intimidation to the Kalantan people especially the voters to surrender their votes to them(Umno/Bn) in exchange for protronas’s fund.This is amounting to bribery and the Kalantanese should sued them.I hope some good samaritan lawyer or lawyers would come forward to help to see justise is done fairly,not just for Kalantanese but for all malaysians.

  14. #14 by SpeakUp on Monday, 27 July 2009 - 12:33 pm

    House Victim … you cannot get an injunction from stopping Petronas in trading because of a few reasons, 1 – the oil has been mixed, which is yours? 2 – this is a matter of an outstanding debt most wrong to obtain an injunction against Petronas on going business.

    Also, is ROYALTY not LOYALTY. Its not theft, just a breach of agreement if any. I think it will be interesting if this were to end up as a suit. KuLi stands behind the payments to Kelantan.

  15. #15 by limkamput on Monday, 27 July 2009 - 12:47 pm

    The half baked Fed court judge has just pronounced judgement, you people in Kelantand and Petronas better listen and listen well. I wonder what can be more loose cannon than this?

  16. #16 by SpeakUp on Monday, 27 July 2009 - 1:32 pm

    Man the air in here is kinda stale … oh well …

  17. #17 by SpeakUp on Monday, 27 July 2009 - 1:41 pm

    I wonder if Mr Lonely-AttentionSeeker can let us know about the laws on injunctions, albeit academically, and how Kelantan can go about to obtain an injunction against Petronas.

    I would love to see that nutter outline some basic principles (credible ones based on case law) in getting the injunction. Guess, this will really take the cake if he can even do it. If he can do it with legal basis I will gladly bow out from here. Hahahahahaaa … If not then we know that we have someone who only is most frustrated because his/her own blog has NO visitors. Muahahahahaahahahaa …

  18. #18 by limkamput on Monday, 27 July 2009 - 4:05 pm

    WHAT CAN we expect from someone who said that Malaysia still has jury trial for murder cases. There is no need to talk about injunction because he may think it is trafffic light junction where he paid off a police officer for beating the red light.

  19. #19 by SpeakUp on Monday, 27 July 2009 - 5:35 pm

    Well what can we say … Milo tin kosong as usual … Hahahahahaaaa …

    And now we have slanderous remarks too, paying police officers off. Hahahahahahaa …

  20. #20 by tanjong8 on Monday, 27 July 2009 - 9:24 pm

    They will pay only if Umno-BN comes to power in Kelantan.

    That is the Umnoputra-Utusan culture.

    They know only power and even that they will try to deny you as in the case of Perak and now probably in Selangor, with the help of some Pas sympathisers

  21. #21 by johnnypok on Wednesday, 29 July 2009 - 1:11 am

    Why “God” allow BN to commit day-light robbery in the holy state of Kelantan?

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