RM59.8 bln petroleum cash payments made to 4 states from 2008 to 2019

The petroleum cash payments made to Sabah, Sarawak, Terengganu and Kelantan amounted close to RM59.8 billion for the 2008-2019 period, according to Minister in the Prime Minister's Department (Economy), Datuk Seri Mustapa Mohamed.

He said Petroliam Nasional Bhd (Petronas) makes cash payment from petroleum of five per cent directly to the state governments of both Sabah and Sarawak.

As for Kelantan and Terengganu, Petronas channels the payment to the Finance Ministry, which subsequently makes the payment to the two states.

Overall, some RM24.54 billion was paid to Sarawak, RM12.78 billion to Sabah, RM22.04 billion to Terengganu, and RM403.25 million was paid to Kelantan.

Mustapa said Petronas had also paid dividends to the Federal government amounting to RM282 billion from 2010 until 2019.

He said this in a written reply in the Dewan Rakyat today, to a question from Lim Guan Eng (DAP-Bagan) who wanted to know the breakdown of cash payments made to each state, directly or indirectly.

Lim also asked whether the resignation of Petronas president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin was related to these payments.

Mustapa said Wan Zulkiflee made the decision to retire after 37 years of service with Petronas.

He said Wan Zulkiflee's appointment as Malaysia Airlines Bhd chairman was a recognition by the government based on his wide and deep experience as well as his success in steering Petronas during the most challenging environment.

This move is one of the government's efforts to review the leadership of government-linked companies, said Mustapa.

"I would like to inform that the resignation of the Petronas president and chief executive officer recently was unrelated to these cash payments," he added.

-- BERNAMA