KOTA BHARU, Aug 25: Kelantan State Petroleum Royalty Claims committee chairman Husam Musa said the state government would file a lawsuit against national oil corporation Petronas for breaching contract on the petroleum royalty on August 30 in Kuala Lumpur.
“The summons writ will be presented to the State Executive Council meeting for approval. If it is approved, the lawsuit will be filed against Petronas on August 30," he said, adding that lawyer Tommy Thomas would file the suit on behalf of Kelantan.
According to Husam, the initial plan was to file the suit on August 31 in conjunction with Merdeka, but had to be changed due to public holiday.
Husam explained that Kelantan’s oil royalty suit was different from a similar suit in 200 by then PAS-led Terengganu state government, because this time around, it is being backed by an affidavit by former Petronas chairman Tengku Razaleigh Hamzah, who has expressed his willingness to testify in court.
"Although the royalty claim case is being brought to the court, the room for negotiation to solve the issue is still open.
"With Ramadan upon us, it is the best time for the parties involved to pay the oil royalties to Kelantan,” said Husam, who also chairs the state Exco on Economic Planning, Finance and Welfare.
Last March, the Kelantan state assembly unanimously gave the state government mandate to take any action, including legal, to claim petroleum royalty as stated in the Petroleum Development Act 1975.
Prime Minister Najib Razak has however ignored the requests, arguing that the Federal government would maintain the "compassionate fund" instead of the oil royalty.
Last May, the Federal government paid RM20 million in such funds, bypassing the Kelantan state government.
Harakah Daily
NB.Latest. The lawsuit will be filed on 30th August 2010 at 9.30 am at the High Court Dagang Jalan Duta Kuala Lumpur.
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