Sabah govt still wants 40% net revenue, despite opposing SLS legal bid

Sabah govt still wants 40% net revenue, despite opposing SLS legal bid

Chief minister Hajiji Noor says the administration is pursuing its own methods to recover revenue owed by the federal government.

hajiji
Sabah chief minister Hajiji Noor says the 40% net revenue is the financial entitlement of the state and its position is more than just an aspiration.
PETALING JAYA:
The Sabah government is committed to recovering 40% net revenue from the federal government, including the state’s claim for the “lost years”, despite its appeal against the Sabah Law Society’s (SLS) legal bid to challenge the special constitutional grant provisions, chief minister Hajiji Noor said.

“The state government sees the initiative by the SLS in a positive light that is not partisan and not political in the common furtherance of the constitutional arrangements when Sabah joined Malaysia in 1963,” he said in a statement today, adding that he hoped any decision would be favourable to Sabah.

He said he had asked state attorney-general Nor Asiah Yusof to scrutinise the ongoing legal proceedings and ensure the state’s position is clear.

However, Hajiji highlighted that the state and federal governments currently have an “interim arrangement”, which has seen revenue increase steadily from RM126 million in 2021 to RM300 million in 2023.

He admitted that this falls short of expectations, but the state government is committed to seeking more from the federal government than previously.

“We will continue to defend Sabah’s constitutional rights in relation to the existing revenue-sharing formula, which includes the state’s claim for the ‘lost years’ where there has been no review conducted from 1974 until recently.

“Sabah categorically confirms that it will never give up its fundamental constitutional rights in relation to the 40% net revenue special grant under Articles 112C and 112D of the Federal Constitution.

“It is the financial entitlement of the state. This stand is very much more than an aspiration,” he said.

Hajiji said if there is no agreement, then Sabah will move to activate the constitutional provision to appoint an independent assessor to determine this issue and decide on what the federal government is obligated to pay.

Yesterday, a three-member Court of Appeal panel granted the Sabah government’s application to intervene in the attorney general’s appeal against a Kota Kinabalu High Court decision to grant SLS leave to challenge the 40% special constitutional grant provisions.

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