KUALA LUMPUR (May 17): Sabah Chief Minister Datuk Seri Hajiji Noor emphasised that although the state government appealed against the Sabah Law Society’s (SLS) legal challenge regarding the 40% net revenue special grant, it has not compromised its official position to the entitlement.
Instead, the entitlement, under Articles 112C and 12D of the Federal Constitution, is now under the purview of the MA63 technical committee chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, and the state government remains committed to defending its rights in its negotiations with the federal government.
“This fact was reinforced by the Prime Minister (Datuk Seri Anwar Ibrahim) in his 2023 budget speech when he recognised and confirmed that the federal government is committed to improving the rate of the special grant compared to what was previously agreed, and will expedite negotiations to find a solution,” Hajiji said in a statement on Friday.
Hajiji also 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.
While admitting that this falls short of expectations, he emphasised that 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’ when no review was conducted, from 1974 until recently,” he said.
On Thursday (May 16), the Sabah state government reportedly intervened in the attorney general’s appeal against a High Court decision granting the SLS leave to challenge the 40% special constitutional grant provisions, with the Court of Appeal allowing the state to join as a co-appellant, despite SLS’ objection.
To this, Hajiji stressed that the state government respects the SLS’ right to take legal action, as public interest litigation is crucial for promoting the rule of law and fair justice.
“The State Government views the SLS’ initiative positively, as it supports the constitutional arrangements from Sabah’s formation of Malaysia in 1963. I do not want to pre-judge the Court of Appeal’s outcome, but I share the same sentiment as the people of Sabah and hope that any decision will be favourable to the state,” he said.
Hajiji also said that the state government has instructed the state attorney general to scrutinise and review the ongoing legal proceedings, and if necessary, to correct any misguided statements that differ from the state’s clear and formal position.
“Notwithstanding the ongoing proceedings in the court of appeal, we maintain the official demand of the state government of Sabah that the federal government is legally and constitutionally obligated to compensate Sabah for what is lawfully due as a special grant, both historically and for the future,” he said.