KOTA BHARU, Jan 29 — Umno veteran Tengku Razaleigh Hamzah has insisted that Kelantan is entitled to a five per cent royalty for oil extracted off its waters, saying it was time to “re-examine the relationship between the states and the federal government”.

The Gua Musang MP told a packed Stadium Sultan Mohamed IV last night that national oil firm Petronas was bound by law to give the money to states where oil is found, adding Kelantan was not interested in compassionate payments.

“Kelantan may be poor. But we are not beggars. We demand what is rightfully ours,” the Kelantan prince said to cheers and cries of “Allahu Akbar (God is great)” at the last night’s gathering organised by the state government over the oil royalty issue.

The PAS government had demanded the oil royalty payment from Petronas last year, after the Statistics Department revealed that Kelantan, together with Sabah and Terengganu, had contributed 62.5 per cent of the oil extracted in Malaysia

The Barisan Nasional-ruled federal government has insisted oil from the joint development area with Thailand was not from part of Kelantan’s waters and has only offered RM20 million as “compassionate payment”.

But Razaleigh, the founding chairman of Petronas, disagreed with the government’s move, saying the formula for oil royalty was first agreed with Sarawak and later extended to all states.

“If Sarawak is due her five per cent royalty, no less is Kelantan, by the same principle,” thundered the Umno politician popularly known as Ku Li.

[An estimated 50,000 turned up to hear Ku Li’s speech.] Razaleigh said he has received the blessings of the Kelantan palace to speak on the issue and also confirmed that he will lead a parliamentary caucus to press the ruling coalition Barisan Nasional to honour the Petronas agreement.

“The oil caucus I will lead is not just about oil. It is to re-examine the relationship between the states and the federal government,” he told the crowd, adding the larger issue here was state rights as Malaysia was a federation of sovereign states that have assigned only certain rights to the federal government.

“Let us re-examine the terms of the Federation Agreement signed in 1948,” Razaleigh added, referring to the founding of Malaya before it gained independence from Great Britain in 1957.

He repeated his earlier argument that Putrajaya should respect the agreements made and not change them depending on who ruled the states, saying “How are we to ask investors to have confidence in us if we can’t even keep contracts between ourselves!”

The move has a precedent in Terengganu after the 1999 general elections, when PAS won the state, prompting the federal government to convert oil royalty payments to compassionate payments managed by a federal department. Terengganu had sued for its right and Putrajaya relented only after Barisan Nasional recaptured the state.

Ku Li, who noted to the crowd that he was entering the stadium after 15 years, was earlier escorted in by a convoy of 50 trishaws. Among those sharing the stage with him were Kelantan state executive councillors, led by Mentri Besar Datuk Nik Aziz Nik Mat.

The approximately 50,000 crowd cheered and clapped when Razaleigh began his speech with “I stand here representing only myself. I am here upon principle.”

The former finance minister and one-time Umno vice-president, who had unsuccessfully challenged Prime Minister Datuk Seri Najib Razak for the Umno presidency, had no kind words for his party during the speech and later when speaking to reporters.

He described Kelantan Umno chief Datuk Seri Mustapa Mohamed, also International Trade and Industry Minister, as a sycophant, and party-owned newspaper Utusan Malaysia as reporting fiction.

“Don’t mention those names to me. Mustapa is a sycophant, Utusan is just [reporting] myths,” he retorted.

Razaleigh has, in recent months, taken a strident stand against his party, particularly over the oil royalty issue and the larger issues of governance in Malaysia.

He had earlier written in his weblog (razaleigh.com) that by ignoring both the letter and the spirit of agreements over oil found in Malaysia, the federal government sets aside the very purpose of Petronas.

“More importantly there is a failure to understand the origin of federal powers over state resources.

“We have forgotten that the states existed prior to the Federation. The Federation only exists because the states were willing to vest their rights in it, such as their rights in oil. Not the other way around,” he wrote.

Razaleigh noted the federation itself rested on the principle of fairness to all the states, and to its citizens, wherever they may live.

“When the government of the day ignores this principle, it is ignoring a basic principle holding our country together.

“There has been too much centralisation of power in the federal government. Powers functions and rights that belong to the states must be restored to them,” the Gua Musang Umno chief said.

Kelantan Umno liaison committee chairman Mustapa Mohamed said only the Umno Supreme Council could determine he action to be taken against Gua Musang division chief Tengku Razaleigh Hamzah who had stated a stand contrary to the federal government's on the payment of oil royalty to Kelantan.
"It (the decision) is not within the jurisdiction of the Kelantan Umno. Only the Supreme Council can decide on the action to be taken against Tengku Razaleigh," he said.

Mustapa (right), who is International Trade and Industry Minister, was asked whether Kelantan Umno would act against Tengku Razaleigh for having said on Thursday that the Kelantan state government should be given oil royalty instead of a
compassionate fund.

Following that statement, Prime Minister and Umno president Najib Abdul Razak said the party leadership would scrutinise Tengku Razaleigh's speech made to a gathering at the Sultan Mohammed IV Stadium in Kota Baharu.

At a special meeting with the Pasir Puteh Umno Division in Pasir Puteh last night, Mustapa said the Kelantan Umno Liaison Committee would meet Najib to discuss and propose projects to be implemented for the people of Kelantan with the compassionate fund.

Mustapa had said recently that the federal government would provide RM20 million in compassionate fund to Kelantan, which was five per cent of the revenue from oil and gas production offshore Kelantan in 2008.


- Bernama
- Bernama

Ku Li: What Umno wants to do to me is irrelevant

Tengku Razaleigh Hamzah has downplayed the possible impending action by Umno against him following his public appearance in Kota Bharu last week to discuss the oil royalty issue.

The veteran Gua Musang MP, who was the founder of Petronas, said whatever they wanted to do to him was irrelevant.

“The issue is what the law says. That law is the Petroleum Development Act that gave birth to Petronas. It gives Kelantan and Terenganu a legal right to five percent of the profit from oil found offshore.

“As chairman of Petronas, I drafted this law and signed these agreements on the instruction of the late former Premier Tun Abdul Razak Hussein. He wanted to ensure that the poorer states in the Peninsula would benefit from oil found off-shore.”
Tengku Razaleigh, affectionately known as Ku Li, said he knew they did not have oil on-shore.

Umno can do what they want

The Kelantan prince was asked to comment on the possible action that might be taken against him following calls from Umno members that he be brought before the party's Supreme Council.

Kelantan Umno liason chief Mustapa Mohamed, who had announced a RM20 million compassionate fund, had called on Umno Supreme Council to determine the action to be taken against Ku Li.

"It (the decision) is not within the jurisdiction of the Kelantan Umno. Only the Supreme Council can decide on the action to be taken against Tengku Razaleigh," Mustapa had said.

Other Umno leaders had also called on action to be taken against Tengku Razaleigh with Prime Minister and Umno president Najib Abdul Razak saying he would look into the matter.

Today, PAS secretary general, Mustafa Ali had also defended Tengku Razaleigh, following reports in several newspapers accusing the former Petronas chairman of flip-flopping on the oil royalty issue.

Tengku Razaleigh's response was to good-humouredly play down his importance. “Who am I next to the real issue, which is the law and the rights of the people. Umno can do what they want. But after that they still have to deal with the law of the land and face the people.”

Umno has never closed its doors to discussion with PAS but has always been sincere in its willingness to discuss for the sake of Malay unity, said Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob.

ismail sabri yaakobIsmail, who is also an Umno supreme council member, said it was PAS which had instead opposed the suggestion for the discussion.

"Nik (Abdul) Aziz (Nik Mat) himself did not agree that the discussion be held to the extent that the PAS deputy president, Ustaz Nasharuddin (Mat Isa) himself was almost expelled for his liberal stand in wanting to discuss with Umno," he said when commenting on the statement by PAS spiritual leader Nik Abdul Aziz Nik Mat who wanted Umno and PAS to sit down together and discuss issues pertaining to Islam

"We have never closed our doors to discussion. I have never heard Umno members or leaders saying 'no more, we don't want to discuss'. Never," he told reporters.

NONEOn Thursday, Nik Abdul Aziz, who is also the Kelantan Menteri Besar, said he wanted Umno and PAS to sit down together to discuss issues on Islamic religion instead of continuing to waste time quarrelling on politics.

He said Umno leaders must think about the need for the two political parties to discuss issues pertaining to religion because it would be pointless for both parties to adopt the approach of adversarial politics.

Ismail Sabri said if PAS wished to sit down for discussion again, Umno had no objection as the party was truly sincere.

"All this while, I understand that in order not to offend its coalition partners, it (PAS) was willing to ignore a very positive suggestion to unite the Malays.

"We don't want to form this or that, to move towards that government or this government. No...we are saying why not sit down and discuss first. What we want to discuss can be determined later, but don't shut off straight away,” he said.

Condition is that PAS must be sincere

In Machang, the Kelantan Umno liaison body was prepared at any time to sit together with Kelantan PAS leaders to discuss the agenda on Malay unity and Islam for the benefit of the people in the state.

Its deputy chairperson Senator Dr Awang Adek Hussin said the willingness was on condition that PAS must be sincere and not use the discussion as a political game.

NONE"(right) Mustapa Mohamed (Kelantan Umno Liaison chair) and I are willing and have never closed our doors to the discussion," he told reporters.

Awang Adek also said that Umno was sincere because it had no hidden agenda and the discussion could be held anywhere.

In Kota Baharu, Kok Lanas state assemblyperson Mohd Alwi Che Ahmad hoped
the suggestion by Nik Aziz for a discussion with Umno and end the rivalry between the two Malay parties would become a reality.

He said the time had come for PAS and Umno to sit together and discuss issues on religion and Malay unity in a sincere manner for a lasting unity.

"I hope Nik Aziz is sincere on this matter and will not impose various conditions as was the case previously...if he can sit down and discuss with non-Muslims, why not with Umno which is clearly a Muslim party," said Mohd Alwi, who is also the opposition leader in the Kelantan state assembly.

Welcoming the suggestion, he urged that the discussion be held now to reduce splits which were occurring among the Malays. - Bernama

Media diingatkan supaya tidak memutar belit kenyataan Mursyidul Am PAS Datuk Nik Abdul Aziz Nik Mat berhubung kesediaan beliau untuk berdialog dengan Umno kononnya pemimpin itu kini menyokong saranan kerajaan perpaduan yang pernah ditolaknya.

Timbalan Pesuruhjaya I PAS Kelantan, Datuk Mohd Amar Nik Abdullah bimbang kenyataan Menteri Besar Kelantan itu akan dimanupulasi untuk mencetuskan kontroversi baru.

“Ini tiada kaitan langsung dengan istilah kerajaan perpaduan. Mesti faham baik-baik kenyataan tok guru ini sebelum membuat laporan... jangan cuba nak tokok tambah.

“Tok guru hanya sebut sedia berdialog dengan Umno dalam isu berkaitan agama sahaja, tidak lebih dari itu. Persoalan sama ada dialog itu mencerminkan kerajaan perpaduan tidak pernah disebut.

“Media nampaknya seolah-olah amat tertarik benar dengan kenyataan tok guru ini. Saya tengok sehari dua ini kerap benar lapor mengenai berita itu,” kata beliau ketika ditemui selepas mengadakan ceramah umum di pekan Gunung lewat malam tadi.

Ekoran tawaran Nik Aziz itu, Presiden Umno Datuk Seri Najib Razak memberi reaksi bahawa pendirian tegas PAS amat diperlukan sebelum sebarang keputusan dibuat kerana pengalaman sebelum ini membuktikan parti tersebut tidak konsisten dan selalu berdolak-dalik dalam pendiriannya.

“Kalau kita tengok reaksi Najib itu seolah-olah beliau ingin kaitkan pada isu kerajaan perpaduan dulu. PAS tidak pernah berdolak-dalik dalam perkara ini. Kalau kata dia (Umno) yang tak mahu, betul.

“Sebab tok guru sendiri pernah hantar surat pada Najib minta diadakan dialog ini tiga bulan lepas tapi tidak dijawab sampai sekarang,” katanya.

Khamis lepas Nik Aziz membuat kenyataan bahawa beliau sedia berdialog dengan Umno dalam isu berkaitan dengan agama, dan perkara yang sama juga turut diulanginya semalam.

Malah semalam, Presiden PAS Datuk Seri Abdul Hadi Awang berkata, PAS sudah lama bersedia untuk berdialog dengan Umno-Barisan Nasional, bukan sahaja dalam isu Islam tetapi juga soal-soal berkaitan kepentingan rakyat.

Terdahulu, ketika menyampaikan ceramah Mohd Amar mengingatkan seluruh ahli serta penyokong PAS agar tidak terpengaruh dengan dakyah politik kotor Umno yang sanggup melakukan apa saja demi kepentingan politik mereka menghadapi pilihan raya umum ke-13.

“Pengerusi Badan Perhubungan Umno ngeri (Kelantan), Datuk Pa (Datuk Seri Mustapa Mohamed) telah sebut kita sekarang ini berada dalam suasana pilihan raya.

“Berdasarkan kepada pengalaman lepas, pada musim-musim begini akan banyaklah janji-janji ditaburnya.

“Tidak kurang juga fitnah bercorak kelemahan PAS disebar meluas menggunakan seluruh jentera kerajaan,” katanya.

Mustapa accuses Kelantan of political motives in rejecting ‘compassionate’ aid

KOTA BARU, Feb 7 – Political factors are the reasons why the Kelantan government rejected compassionate aid from the federal government, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

He said the state leaders were also not accustomed with the legal aspects of oil exploration when they pressed for oil royalty.

“There is no such thing as royalty in oil production. What we have are only cash payments or in the form of compassionate aid,” he said when briefing state civil servants on the oil royalty issue here today.

Mustapa, who is also Kelantan Umno liaison committee chairman, said Kelantan had not produced petroleum as claimed by the opposition leaders but only gas along the border with Thailand, which had been the subject of an overlapping claim.

“Even that, the quantity is very small and the RM20 million compassionate aid announced recently is adequate,” he said.

He said as such the opposition should not hoodwink the people on the non-existent oil royalty and instead clarify the actual agreement with Petronas to the people.

“A claim made by Member of Parliament for Gua Musang Tengku Razaleigh Hamzah on Jan 28 contradicted what he had said in his speech on Oct 2000 on compassionate aid for the Terengganu government,” said Mustapa.

Mustapa said he was saddened by the Kelantan government’s decision to reject the setting up of the state development committee without valid reasons.

On the contrary, he said, PAS wanted to hold a discussion on religious issues with Umno. – Bernama