Published: Tuesday November 20, 2012 MYT 6:52:00 PM

Federal govt forms special committee to study payment from petroleum revenue

PUTRAJAYA: The federal government has agreed to set up a special committee to conduct a fair and transparent study on the payment of cash from petroleum revenue to the east coast states of peninsular Malaysia, a statement from the Prime Minister's Office said on Tuesday.

It said the committee would be chaired by former Chief Justice Tun Abdul Hamid Mohamad and would comprise experts on international and local laws and representatives of the governments of Terengganu, Kelantan and Pahang consented to by the sultans of these states.

The formation of the special committee is aimed at undertaking a comprehensive study on the issue of cash payment by taking into account all aspects raised by these east coast states, the statement said.

"The committee is expected to complete its task in a period of six months from the date of its establishment," it added.

The statement said the federal government had received the names of the representatives from Kelantan and Pahang while Terengganu was still considering its candidate.

It quoted media reports as saying that Kelantan had put in a claim for RM10.4bil of the revenue from petroleum and gas output.

"As the Kelantan government has agreed to the setting up of the committee and has named its representative, it is only appropriate that the whole issue and claim be forwarded to the committee," it said. - Bernama

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