MB Seeks To Have Terengganu Manage Oil Royalty

KUALA TERENGGANU, April 20 (Bernama) -- Terengganu Menteri Besar Datuk Ahmad Said Sunday asked the federal government to hand over to the state government the management of the latter's oil royalty which amounts to nearly RM1 billion a year.
He said the time had come for the annual five per cent oil royalty, which was withdrawn in 1999 when PAS captured the state and restored later as the Federal Government Special Fund, to be fully managed by the state government to carry out more development projects.
"We want to be frank. We expect the (royalty) money to be given to us," he told reporters here.
After PAS took over the administration of Terengganu following the 1999 general election, the Finance Ministry announced on Sept 5 2000 that the five per cent oil royalty would be channelled directly to the people through development projects and no longer given to the state government.
Ahmad said the money, via the special fund, was channelled directly to the implementing ministries without any consultation with the state government, resulting in many projects failing to provide the desired impact as they had not taken into account the people's needs.
"We admit that there are projects which we planned for. However, there are also projects which we did not plan for. Suddenly, we hear of projects allotted to us. Building a road in the jungle at a cost of between RM50 million and RM60 million. We come to know of the project when problems crop up, such as land acquisition and so on.
"This is the problem, because too many quarters are managing the oil royalty because it comes as compassionate fund. They use our money. When a ministry implements a project, it does so based on its own interests without taking into account the feelings and needs of the people of Terengganu.
"This raises problems for the state government. I am being frank here. Personally, I have been unhappy with some projects because of their high cost and lack of priority for the people. It is other people, not us, who make the decisions when we are the masters (in the state)," he said.
Ahmad said handing over management of the oil royalty to Terengganu would facilitate the state government in the planning of development projects without the need to apply for such projects much earlier.
He said the state government had its own priorities in deciding on projects and having control of the oil royalty would make it easier for it to budget and plan.
Asked how much the state government received in the form of the special fund, Ahmad said: "Up to today, we do not know the amount of money that we have. Even when I was an executive councillor before, we did not know and were not told how much the five per cent royalty was worth. We were not told. This is the problem we face."

tunku : you're right ahmad said.the last 4 years saw trengganu spending billions of ringgit just to build monuments and monsoon cup expenses and also for patrick and co. all the federal ministries having more authority than the state.that is why the sultan declined to accept idris jusoh as the mb. afterall, terengganu oil reserve won't last long, few years down the road.before it is empty ask for your right but don't do like what they have been doing for the past 4 years.spend it wisely.i know too that this is want of your task for being made the menteri besar of terengganu.