Former Petronas chairperson and current Gua Musang MP Tengku Razaleigh Hamzah has questioned the federal government flip-flop in resolving the Kelantan state government's oil royalty demand.

"Why do we still like to flip-flop over the issue that is so clear as stipulated in the act and agreement which has been signed and agreed upon?" he posted a message in his Facebook page on Tuesday.

The message was attached to images of the Petroleum Development Act 1974 document.

ku li tengku razaleigh interview 241106 explainDuring a TV interview with Astro Awani last night which was reported by Malay daily Sinar Harian today, the veteran Umno leader hoped that the issue will be resolved as soon as possible because it is simple and does not involve the federal government.

According to Razaleigh (above), who drafted the Petroleum Development Act 1974 regulating the royalty payment to state governments, the dispute is only because Petronas has failed to discharge its obligation to the Kelantan government as stipulated in the accord when the state surrendered all its petroleum rights to the national oil company.

He repeatedly stressed that the issue is between Kelantan state government and Petronas.

"So now its Petronas's responsibility to solve the issue with the Kelantan state government. So the question of who is involved in the dispute does not arise.
"(The) only (reason is) Petronas' weakness because it did not pay the state government," he was quoted as saying by the daily.

najib putrajaya 280212Razaleigh was responding to the Prime Minister Najib Abdul Razak's (left) decision to set up a special committee which will be chaired by former chief justice Abdul Hamid Mohamad.

Its members will comprise local and foreign legal experts, as well as representatives of the Pahang, Kelantan and Terengganu governments.

The opposition saw the committee as an election ploy to relieve the mounting pressure on the BN from outside and within the federal ruling coalition.

Razeleigh added that he is prepared to offer his services if requested by the committee.