Husam, who is also a former state government executive councilor, said there was only the term cash payment and that the money is deposited directly to the state government’s account.

“The agreement between Petronas and the state government in 1975 was only referred to as cash payments (not royalties).

“The term is not a problem, as long as the money goes to the state government’s coffers,” he told reporters after opening the Kelantan State Padi Wangi Cooperative meeting at the Kemubu Agricultural Development Authority (Kada) office in Selising here today.

He said the previous federal government under Barisan Nasional (BN) credited the money into the accounts of the Kelantan Federal Development Department (JPP) and the Kelantan Islamic Religious and Malay Customs Council (MAIK).

“Only after PH took over the federal government, Prime Minister Tun Dr Mahathir Mohamad has made the policy (regarding petroleum and gas payments to the producing states) and the policy has been discussed in the PH presidential council.

“The PH council agreed that cash payments should be made to the state governments involved. When the policy was implemented, payments were made, quietly,” he said.

Husam said although Kelantan was said to possess four oil wells, three of them were located in disputed areas, which resulted in lower yields for the state.

“More importantly, the people of Kelantan need to know the state government’s plans for the RM28 million received.

“The state government should present it to the people as to how much of it will be allocated for education, welfare, orphans, farmers and youths,” he said.

On Monday, Finance Minister Lim Guan Eng was reported as saying that oil royalty payments had been made to Kelantan last month, upon the directive of the prime minister.

However, Kelantan Menteri Besar Ahmad Yakob on Tuesday reportedly said that Kelantan had only received “wang ehsan” (compassionate payment) from the federal government on Sept 17, and not royalty payments.