Demand for return of 40% revenue rights taken seriously, says Anwar
PETALING JAYA: The federal government will not appeal against the Kota Kinabalu High Court ruling affirming the entitlement of Sabah to a 40% “special grant” of federal revenue collected from the state but will contest certain aspects of the judgment.
In a statement issued after a special Cabinet meeting, the government said the Attorney-General’s Chambers (AGC) had briefed ministers on the recent judgment in the judicial review brought by the Sabah Law Society (SLS) against the government.
“The federal government has decided not to appeal the special grant based on 40% of the revenue.
“Accordingly, the federal government will immediately initiate negotiations with the Sabah state government.”
The special Cabinet meeting held yesterday discussed the High Court’s decision on the grant, which stemmed from the judicial review filed by SLS.
At the same meeting, the AGC also presented its advice and views to the Cabinet on several defects in the judgment.
One issue involved allegations of abuse of power and breach of constitutional duty by both the federal and Sabah governments dating back to 1974.
The judgment also described the post-2021 review process of the grant as unlawful, irrational, procedurally irregular and disproportionate.
These defects had prompted the federal government to decide to appeal.
Prime Minister Datuk Seri Anwar Ibrahim on Nov 10 said the federal government takes seriously the demand for the return of the 40% revenue rights of Sabah.
He reaffirmed that the Madani government remains committed to implementing the Malaysia Agreement 1963 and ensuring Sabah’s allocations are stronger and more secure than before.
Commenting on the resignation of Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedict, Anwar said he understood public concern but felt the decision was premature.
Benedict stepped down saying it was a matter of principle over the government’s decision to appeal the High Court ruling.
