KUALA LUMPUR: Kelantan will receive compassionate payment from the federal government from the state's offshore oil production revenue starting next year, Datuk Seri Najib Tun Razak announced today.
The prime minister said that just like for Terengganu, the compassionate payment was being given after taking into account the need to continue developing Kelantan and to enhance the wellbeing of the people in line with national development trend.
"To ensure that the money is enjoyed directly by the people of Kelantan, the allocation will be in the form of development projects and poverty eradication programmes and will be channelled directly by the federal government after discussion with the state government," he said in the Dewan Rakyat today.
Najib was replying to questions previously raised by several MPs from Kelantan regarding oil royalties for the state.
He said the federal government had thoroughly studied the petroleum royalty issue mooted by the Kelantan government, including the legal aspects related to the powers of the government and the management of the country's petroleum revenue.
http://www.nst.com.my/Current_News/NST/articles/20091104114207/Article/index_html
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