Lawyers representing Kelantan senior state exco member Husam Musa today filed an interlocutory injunction against Petronas to stop paying oil royalty payments accorded to Kelantan to the federal government or its agents.

The application was filed through the firm of senior lawyer Tommy Thomas at the Kuala Lumpur High Court today.

In the interlocutory injunction application, the Kelantan government is seeking cash payment amounting to five percent of the value of petroleum, either on or off-shore in Kelantan, which is a subject matter in the on-going dispute filed by the state in 2010.

NONEHusam (second from left, in photo) is seeking an injunction to compel Petronas, with full disclosure, that cash payment for the Kelantan government be placed into a syariah-compliant account until further notice by the court.

He also wants an order to compel Petronas to prepare an account detailing past cash payments made by the national oil company to the federal government within 14 days of the order.

PAS-led Kelantan government had filed the suit against Petronas over oil royalty it claims the is owed to the state by the Federal government following the discovery of oil since 2004. It is seeking RM12 billion from the oil conglomerate.
‘Wang ehsan'
Husam in filing the application said Petronas president, Shamsul Azhar Abbas said last month it will soon pay the oil royalty payments to the federal government which will distribute it to the petroleum producing states as what they term as "wang ehsan".

"Kelantan is seeking oil royalty of RM800 million a year. We are concerned that Petronas will pay the money to the federal government and won't be able to pay us.

azlan"Hence, we want the money be placed in a bank account which is to be managed by the lawyers. We have also asked all exhibits/documents or accounts relating to the issue to be revealed to the state government," he said.

Husam is the exco member in charge of oil royalty.

In his supporting affidavit to the application, Husam said it was public knowledge that Petronas had retrieved oil off-shore from Kelantan.

"However, to date, Petronas has failed to provide any information on its exploration activities and the extent of its production of petroleum these areas. Further it has not made a single payment with respect to the petroleum."

This has resulted in the legal suit, filed by the Kelantan government.

Husam added that Kelantan further contends that the refusal of Petronas to disclose information on its off-shore exploration and to making payments to the state government amounted to serious breaches of the Kelantan Agreement, the Kelantan grant and the Petroleum Development Agreement.

He contended that the state had been unfairly discriminated by Petronas compared to other oil producing states of Terengganu, Sabah and Sarawak where such agreements were identical yet payments were not made to Kelantan, which is led by the opposition.
"This is in violation of Article 8 of the federal constitution (with regards to equality and rights before the law).

Use votes as leverage for oil royalty, says Husam