Thursday, July 09, 2009

D N41 T -5 : Muhyiddin, now pass the bucks around...

"In the agreement, the Federal government could take the oil and gas but is liable to pay royalty in cash twice a year in the months of March and September,"

(The oil and gas activity is located about 150km off Kelantan shores and is jointly developed with Thailand. The area is a disputed by Thailand and Malaysia.)

"Sabah's oil is found 210km off its shores and Terengganu's oil and gas activity is 220km away. How can they be entitled to royalty and Kelantan doesn't get any," Husam Musa - Kelantan EXCO member
  1. On T-7, Muhyiddin makes the statement " The buck stops here". 2 days later, Muhyiddin is "passing the bucks". So what does that make Muhyiddin? A traffic police, directing the bucks around?
  2. What is it about this time? Well, as early as 1980's, there were rumours circulating about oil and gas reserves off Kelantan's coast. lately, it is said that the rigs started operating in 2004. It is currently believed that the Kelantan rig known as Cakrawala is producing 6,000 barrels of natural gas daily which are then routed to Songkla for processing. Financially, that will roped in Rm 500 K daily. Blogger Malaysian waves claimed that Kelantan should, if eligible to 5 % oil royalty, earned to the tune of RM 180M yearly. Work that for 5 years and you get a whopping RM 0.9 B (Husam Musa round it up to RM 1B).
  3. Shooting off from thereon, it may just be the reason why Nik Aziz wrote a letter to 1M PM6 requesting the royalty. And this, my friends is one of the core issue in Manek Urai by-election - Do Kelantan has the rights for oil royalty?
  4. Husam Musa, in one of his ceramah during Manek Urai's by-election, claimed that there is an agreement signed in 1975 pertaining to oil and gas between Kelantan state government and the federal government (which was then represented by Tg Razaleigh Hamzah).
  5. International Trade & Industry minister, Mustapha Mohamed dismiss the allegation as a non-issue. The question now is - if it is a non-issue, why is Muhyiddin Yassin aka 1M DPM instruct Petronas to answer claims over Kelantan oil royalty?
  6. In Muhyiddin's statement, as reported by STAR datelined 9th July 2009, Muhyiddin :-

    • instructed Petronas to answer claims on oil royalty to Kelantan;
    • gave 48 hours for Petronas to clarify the allegations;
    • gather that the offshore areas are outside the state borders (belongs to federal administration);
    • claimed that most of Petronas profits re-channeled back to the government;
    • claimed that Petronas provide RM 20 ~ 30B per annum to development cost for the whole country, which directly or indirectly brings benefits to Kelantan;
    • directed KESEDAR (Kelantan Development Authority) to list all roads, bridges and infrastructure completed in the past few years;
    • claimed that the poverty level in southern part of Kelantan is higher, if not for KESEDAR.

  7. Since both sides has put their claims, the first question will be - Is Tengku Razaleigh around? He should be and furthermore he should be on campaign trail for BN's candidate in Manek Urai. Why didn't Muhyiddin enlist his help to clarify matters? Tengku Razaleigh is said to be part of the signatory and he was Petronas Chairman back in 1975. He should be the best person to clarify the statement and its implications.
  8. If Sabah's and Terengganu's offshore rigs are 210 and 220 km away (as compared to Kelantan offshore rigs of 150 Km) are eligible for the oil royalty, why not Kelantan? If it is in the disputed Thailand-Malaysia border, Kelantan is still the border state between Malaysia and Thailand. So it is still eligible for consideration to get the oil royalty. Do Malaysia has new state there? If yes, when did the state joined Malaysia? Mustapha Mohamed should make the statement clear. Do we have or don't we have the agreement between federal government and Kelantan regarding the oil royalty?
  9. 48 hours is not that long. Can we expect Petronas to clarify the issue latest by 11th July 2009 (which happens to be on Saturday?).
  10. Muhyiddin should quantify how much the Federal government alocated projects for Kelantan. And who controls the budget? If Kelantan deserved the oil royalty, will the federal government channel the royalty money to Kelantan state government? Or will there be another "wang ehsan" case applicable like those applied to Terengganu when the state was governed by PAS in 1999?
  11. As has been said countless times before, it is the federal government's responsibility to provide all the basic necessities. Listing out past projects is not answering the issue. Has the federal government done sufficiently enough and fairly in distributing projects for Kelantan?
  12. Whilst preparing this posting, this scribe chanced upon a statement by Mahathir Mohamed some years back that Mustapha Mohamed is one of the vocal voices who openly requested the federal government to shut the door on Kelantan and stopping projects in Kelantan. Is this true? Mustapha Mohamed should defend his position and since the accusation is done by Mahathir Mohamed, once UMNO supremo, it should be clarifies by Mustapha Mohamed. Has he betray the trust given to him by Kelantan voters?
  13. The Kelantan oil issue will not go away or blown away. BN must answer to the rakyat. And BN must explain to the rakyat why the double standard if Kelantan is denied the oil royalty. Is BN prepared to do that?
  14. Muhyiddin has said the bucks stop here in Manek Urai. Yes, the bucks has stopped but why is Muhyiddin passing the bucks to Petronas (to answer on Kelantan oil royalty issue) and KESEDAR (on roads, bridges, infrastructure projects)? Muhyiddin should do the answering and if need be, drag Tengku Razaleigh along to explain. But then again, can Muhyiddin request Tg Razaleigh to tag along? Could he? Will he?
  15. Will Tengku Razaleigh surfaces to tell his side of the story on the account of Petronas-Kelantan agreement? UMNO has bumped off Tengku Razaleigh many times before. Will Tengku comes out and clarify the agreement and Kelantan oil issue? If Tengku is willing, will he be standing in BN's camp or PR's camp? Who knows? He may be standing side by side with Zaid Ibrahim to explain the Kelantan oil issue.
  16. It's getting hot in Manek Urai and the oil issue has not been extinguished....yet. UMNO claims that they are the champion for the people, is UMNO really championing for the people or for its own political survival? Manek Urai is demanding answers and UMNO better come up with plausible explanation.
  17. Remember, Petronas has Kelantanese employees too so Petronas better spilled out the truth or else someone will possibly spill the beans...and UMNO may be swept off its feet with the spilled beans.
  18. I sense Manek Urai is slipping from BN (read UMNO). Actually, it was never theirs in the first place, although it was temporarily "loaned out" to UMNO in 2004...and that's good news for PAS. One word of advise though, PAS should never let their guards least, not in the land of kapok kecik.
Till then...G'nite M'sia...wherever u are...


Fi-sha said...

Dear sir

Kapok kecik itu apa?

Although Kelantan has small reserves of oil, so naturally, if any being pumped out, the state is entitled to the royalty unless the agreement says that the state would only be getting one if the pipes landed on its soil. In Kelantan's case, the pipes landed in Thailand.

Hmm, documents...where art thou documents?

nightcaller said...


Kapok kecik = small axe = kapak kecil (a weapon traditionally linked to Kelantan. Used to believe that the small axe is tied to a small rope so that the axe thrower can retrieve his axe after throwing it. It is also believed to be a favourite weapon for paid assassins of the past)

Good point if the landing point is taken as the basis of the eligibility of oil royalty. Imagine, the oil from Terengganu offshore pumped directly into tankers tpo be transported elsewhere. Then, where will justice prevail? Is that the reason why PGU (peninsular gas utility) station is placed near Segamat, Johor? Using your line of arguments, Johor gets the gas royalty. Is that the case?

That's why I bring out the issue and say that the best person to resolve the issue is Tg Razaleigh Hamzah who is still alive and who will be able to shed some light. Another person is Salleh Abbas (former PAS state rep, former CJ) who claimed that he has sighted the documents when he was the AG but he categorically mentioned that what he saw is the unsigned version of the agreement.

So, let's get the issue resolve wjilst the main players are still alive...

ahoo said...

The joker will come up with very creative reasoning. Since the exploration has had incurred so many millions, the royalties from oil & gas cannot even cover the operational costs. So how to pay out royalty like this ?

Beside creative accounting, we will witness creative reasoning BUT be certain that they will keep mum for a while and start shooting their own feets thereafter. Betul, Betul, Betul said the foremost lawyer of the land.

nightcaller said...


Jokers they are. In another news Rais said “This is different from the oil royalty enjoyed by the Terengganu state government as it is disbursed on the goodwill of the federal government, not derived from the rights under the laws,” - Rais Yatim (Minister)

I will cover more on this in tonite's posting (complete with dual language translation).

See how they wriggle out from this issue...

Anonymous said...

You know, to me.....

It has reached a stage where UMNO has no more ragrd for the rule of law and the sanctity of contracts and / or the constituition.

They just decide on whatever and then rely on their slaves/bitches in the police/judiciary/civil service to be compliant and then rule in their favour.

Take the example of the courts with what they decide with regards to Peraks speaker powers and say Pandikars powers, you know.

Its one rule for you people and another rule for the govt.

Its reached a stage where no matter what you peasants say and claim, we the govt decide this is it and this is it.

Oh and btw, the FEderal Court is OURS!!! we own those bitches!!

and what r u going to do about it?

nightcaller said...

Anon 12:19 pm

Actually I don't know what you know :)

However when you wrote "and what r u going to do about it?" Well, combined, the rakyats has shown them half of what we are capable of in March 2008. Do you think, for a second, BN dares to bulldoze things the rakyats way again? Think again, they might see the full fury of the rakyats in GE 13.

R u game?

Anonymous said...

Arent they already doing it? I mean bulldozing like nobodys business.

Perak Federal Court decisions is a joke.

The police is continuing harassing innocent vigil protesters macam like nobodys business.

Election commission comes out with stupid rules like no pondok panas, cannot mention altantuya and what have you.

I am definitely game but MOST MOST importantly, its whether the sabahans and sarawakians are game or not.

Therein lies the lock in which Pakatan must find the key. No question!

nightcaller said...

Anon 9:12 pm

Well, let's look at the positive side...

1. Perak case - at least now the federal court agreed to hear MB Nizar's appeal and at least the high court ruled in his favour before being overturned by the appeal court. It means that there is still some semblance of justice available although we could not placed our hopes too high...

2. Harrasment of vigil protesters - yes, they are some harrassment but still the protesters were released after teir details are recorded. A far cry from the past, don't u think so?

3. Election commission - yes, they say no pondok panas and limit the supporters numbers marching to nomination centre. But still pondok panas and the march is allowed and no serious actions were taken.

These developments should be an encouragement for Sabah and Sarawak to turn the tables on BN, provided that PR can offer a better alternative in terms of the candidates. If it is just re-cycled candidates, then be prepared for PR to wait for a few more years before taken seriously there.

Anonymous said...

No 1 - NC, i am not so optimistic as you. These are all for sure, Federal Court judgmenet has already been made. Made over teas and scones between UMNO CJ Zaki and prob Najis. I 'll state right here and now Fed Court Judgement will b 5-0 or at best bestest 4-1 in favour of that illegal alien Zambry. Unlike you, I dont believe in the courts system anymore when it comes to political cases! Less than ZERO credibility.

2. Its not just details. Getting them to keep going back to police stations is harrasment, financial and time harrasment. People have to pay a hidden costs to these stuff. Look at the prejudice. ZERO arrest when its some prop UMNO protests like when KJ and his goons protested Condoleeze Rice 1 or 2 years back ! ZERO arrest!!!!!

3. Its not about whether subsequently people follow or not. Its the fact that they come out with the rule in the first place. The point is it shows blind prejudice and subservience of supposedly independent bodies. It shows their role their only objective is to do BeeEnd's bidding!!!!!

nightcaller said...

Anon 1:33

1. Not optimistic but realist! When the federal court sits to hear MB Nizar vs MB Zambry, my take is 3-2 either way. Y? Because this is a big issue and by having a narrow margin, it will still give the chance for the judiciary system to make an "about turn" to review their judgement (how they are going to do that, God knows).

2. Getting them to repeatedly report at police stations is a way of deterrence ie many of us do not want to go through the hassle of going to police stations. On KJ's protest to Rice, years is noted but do u see the police lately taking actions on illegal gatherings? like kg buah pala? It means that the police is easing off in their actions...

3. Let's see what happens when the govt did not renew Musa's tenure as IGP...

Yes, I still believe in our legal system. It may be flawed but there will be a time when brave souls (judges) uphold the system...and I never give up

Anonymous said...

Okay we see when the Fed Court sits to judge Nizars appeal. Even 4-1 will b a earth shattering shock to me.

For me the only way out of this whole Judiciary mess is if Pakatan takes over Federal govt AND is brave enough to pass a law that appointment of the judciary branch is taken 100% off the executives hands. Yes, Pakatan has to do that, they also cannot appoint.

Maybe the circle of judges vote among themselves a chief judge among them. Likewise, Court of appeal selects among them who to take over their retiring circles etc etc.

ONly this way will judges rule without fear and favour.

Corrupt bitches all of them right this moment.

nightcaller said...

Anon 5:44

Corrupted?'s just opportunist at work, scrambling for top post at the expense of the people.

The present system if appointing judges is already there but has been hijacked by the executive branch. What is needed now is for the judiciary to regain their honour and dignity. Once in a while they too need to be reminded that they are an independent part of the system.

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