In an exclusive interview with FMT, Hajiji said the state government viewed the decision positively albeit with caution.
“If there are certain aspects of the High Court’s judgment that they feel they need to appeal, we will give them the space to do so,” he said referring to the “defects” identified by the Attorney-General’s Chambers in the grounds of judgment issued by Justice Celestina Steul Galid earlier this month.
Hajiji said the federal government was looking to appeal certain findings as regards its conduct since 1974.
“It would not be fair to them (the federal government) if they did not appeal (to challenge these findings),” he said.
Last Thursday, Prime Minister Anwar Ibrahim said Putrajaya cannot remain silent after the Sabah High Court ruled that the federal government’s actions since 1974 had been “unlawful, irrational, procedurally improper or disproportionate”.
He said the findings made against the federal government were “severe” and unprecedented and could affect the government’s entire structure since its inception.
Anwar, however, assured Sabahans that the federal government will honour its obligations to the state.
Hajiji said the state government has set up a special committee comprising the state secretary, its attorney-general, and a senior finance officer to review the figures and go over the technicalities involved in preparation for negotiations with Putrajaya.
He said the main focus was to obtain accurate data.
“Certain things need to be clarified, like the amount of tax collected from Sabah,” he said, pointing out that many huge corporations that operated in Sabah paid taxes in Kuala Lumpur as it was headquartered in the capital.
Federal expenditure, 40% entitlement unconnected
Hajiji also weighed in on a debate which has arisen after Anwar said that the federal government had collected RM10 billion in revenue from Sabah while channelling RM17 billion back through federal expenditure.
Anwar’s claim led to former Sabah Law Society president Roger Chin to demand that the federal government release a clear breakdown of revenue collected from Sabah, repayments under Article 112C of the Federal Constitution, and ordinary federal spending to clarify the state’s 40% entitlement.
It was previously reported that the federal government had set aside RM17 billion for Sabah, funds meant for the salaries of teachers and policemen, as well as subsidies and development projects.
Sabah’s 40% claim, on the other hand, is on the net revenue collected from the state which is to be returned to the state as stipulated in the Malaysia Agreement 1963, and not expenditure by the federal ministries.
Hajiji said there is a need to ensure that all calculations are accurate.
“Negotiations are a must to determine the actual figure,” he said.
Fiscal reports state the federal government collected an estimated RM261.9 billion in revenue in 2024, including RM16.6 billion from Sabah. The state, based on the High Court ruling, is therefore entitled to several billion ringgit.
However, official records show that around RM830 million had been channelled directly to Sabah, while federal expenditure for the state came up to RM2.5 billion.
Political observer Jo-Anna Sue Henley Rampas said the 40% entitlement issue has entered into its most sensitive phase.
Sabahans have waited far too long for a resolution and are eager to move past the debates towards implementation, she said, adding that any resolution would hinge on the level of trust between the federal and state governments.
“If there is sincerity, the 40% (entitlement) would be realised. If there isn’t, we go back to square one – of repeated promises and delays.”