TUMPAT: Kelantan state oil royalty is expected to be disbursed equally between the Federal Development Department (JPP) and Kelantan Islamic Council (MAIK) by January next year.
Kelantan state Umno liaison chief Datuk Mustapa Mohamed said a principal agreement between the federal and the state governments had been reached two weeks ago after much deliberation at the national level.
“A memorandum of understanding will be drafted and is expected to be inked by next year,” said Mustapa at a press conference here today.
The amount to be disbursed is said to be around RM40 million.
He said contrary to claims by the opposition-allied movements that the Federal Government had been deferring payments, time was needed to study the state oil royalty issue for the benefit of all.
Mustapa, who is also international trade and industry minister said the monies would be used for various state development projects, as well as for people-centric programmes including academic excellence rewards in examinations such as Ujian Pencapaian Sekolah Rendah and Penilaian Menengah Rendah.