17 Oct 2011

Kelantan wants Federal to pay up RM9.4 billion debts

Harakahdaily   
Oct 17: The Kelantan state government has urged the Federal government to immediately pay up some RM9.4 billion in debts to the state.

Giving details of the amount, state exco in charge of economic planning, finance and welfare Husam Musa (pic) said the federal government owed Kelantan RM7 billion in oil royalty payment and RM2.4 billion as compensation for the usage of lands for the National Park.
“The amount is huge and the federal government must be held responsible,” he said.

The PAS vice president pointed out that compensation for the National Park involved an area of 1,043 kilometre-square including the forest.

“Based on early research the claim has its basis as the state government loses the economic value due to prohibition of logging from the reserved forest, which has a net value of RM1.2 billion.

"Secondly, the loss of income to exploit the land as oil palm plantation which has a net value of RM585 million for the whole area,” he added.

As for commodities such as rubber for latex and timbers, the state government has lost around RM353 million, said Husam.

He was speaking at a forum last Saturday, joined by Lembah Pantai member of parliament Nurul Izzah Anwar and national laureate A Samad Said in Kelantan.

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