Datuk Husam Musa, a PAS vice-president, said the Federal Government’s claim that it was legally bound to pay royalty only for oil extracted within three nautical miles of its shores was incorrect.
He was referring to Clause 4 of the Petroleum Development Act (PDA) 1975.
Prime Minister Datuk Seri Najib Razak created an uproar when he announced that the BN federal government will pay Kelantan compassionate fund (wang ehsan) for oil extracted in its waters instead of oil royalty.
PAS lawmakers are disputing the “goodwill payment”, comparing it to receiving alms.
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