Special Grant and 40 per-cent tax revenue separate matters
Published on: Friday, December 02, 2022
By: Larry Ralon
Hajiji, who is also State Finance Minister, was explaining the special grant, the 40 per cent claim and the gazette raised by Assafal P Alian (Tungku), Datuk Darell Leiking (Moyog), Jamil Hamzah (Bugaya), Norazlinah Arif (Kunak) and Azhar Matussin (Darau).
Kota Kinabalu: The Special Grant for Sabah by the Federal Government and the gazette related to it has nothing to do with nor replaces Sabah’s demand for its rights to 40 per cent of the Federal Government’s net yearly revenue from the State, said Chief Minister Datuk Seri Hajiji Noor.The Federal Constitutional Order (Review of Special Grants Under Article 112D) State of Sabah) 2022 that was gazetted was only to enable the interim payment of the special grants to be made to Sabah, he said when winding up for the Finance Ministry at the State Assembly, Thursday.
ADVERTISEMENT
Hajiji, who is also State Finance Minister, was explaining the special grant, the 40 per cent claim and the gazette raised by Assafal P Alian (Tungku), Datuk Darell Leiking (Moyog), Jamil Hamzah (Bugaya), Norazlinah Arif (Kunak) and Azhar Matussin (Darau).
Hajiji said for 53 years since 1969, the State Government received a static special grant amount without any increase of RM26.7 million per year.
“However, following several discussions and negotiations finally, last April, we managed to reach a consensus whereby the special grant payment is increased. I am very aware that the increase in payment to RM125.6 million that we already received this year is much lower than what the State Government should have received based on the provisions in the Federal Constitution and the 1963 Malaysia Agreement (MA63).
“Therefore, I would like to emphasise that the increase in payment is accepted without prejudice on the basis that it is only an interim arrangement and has asserted the rights of the State Government to rely on the original formula as stated in Article 112C and Part IV of the Tenth Schedule of the Federal Constitution as well as obtaining any arrears due to the lack of review of special grants since 1973.
ADVERTISEMENT
“However, to enable the interim payment to be made, the Federal Constitution Order (Review of Special Grants Under Article 112D) State of Sabah) 2022 needs to be gazetted,” he said.
Hajiji is confident that the new Federal Government would fulfil its promise to continue to negotiate together, not forgetting that the Unity Government formed at Federal level will bring a wave of unity and justice to all the people of Sabah.
ADVERTISEMENT
“I have voiced and affirmed the State Government’s position in the Special Council on Malaysia Agreement 1963 (MKMA63) meeting to continue to demand the right to 40 per cent of the net revenue of the Federal Government in Sabah as stated under MA63.
“The State Government will make sure that our needs and interests will always be prioritised and fought for,” he said while hoping that this matter would no longer be twisted because it could cause confusion. Let’s join hands and work together to demand the rights of the people of Sabah,” he said.
To supplementary questions from Darell and Assafal, Hajiji said as Chief Minister he was in the MKMA63 which was chaired by the Prime Minister.
“So the said gazette (for the special grants) is to enable the Federal Government to pay the special grant to Sabah for five years, starting this year until 2026. But it is not a gazette to eliminate the 40 per cent we have been demanding all along.
“In the meeting, I explained that the 40 per cent demand has nothing to do with the payment (special grant) that was given and gazetted. We have issued a joint statement with the Prime Minister (Datuk Seri Ismail Sabri Yaakob) on 14 April 2022 that the 40 per cent we have been demanding so far has nothing to do with the special grant,” he explained.
See Page 2, Col. 5
Hajiji said the previous Warisan government had also made an agreement on 18 October 2019 but that the demands were much lower than the payments being made now.
“But because the federal government at that time changed and because the Sarawak Government did not agree, the payment as given now cannot be implemented.
“So, what is necessary here, as suggested by the Moyog assemblyman, is that our efforts will continue according to what was decided in the MKMA63 meeting chaired by the Prime Minister.
“As a member of MKMA63, I would like to clarify that there is no single decision to eliminate the 40 per cent. The gazette (for the special grant) is to enable the federal government to pay the amount that has been set by them,” he stressed.
Hajiji also explained that he had also raised this issue during a recent meeting with Prime Minister Datuk Seri Anwar Ibrahim.
“And he (Anwar) has given assurances that he will continue to seriously consider the requests and demands of Sabah as enshrined in MA63. That is what we have mentioned to him and hopefully, we can realise this matter.
“I will bring up this problem again because this is a problem that has been discussed for too long by the entire leadership and our people in Sabah,” he said.
On Assafal’s proposal for the State Government to request that the gazette (special grant) be de-gazetted because the amount of the special grant is not large compared to the amount of 40 per cent of the net income of the Federal Government in Sabah, the Chief Minister said;
“If we cancel this gazette now we will not be able to be paid (special grant). We will not be paid for five years as promised.
“To me, that (the gazette issue) is not important. Because this gazette is to pay the special grant to the State Government. Whereas, the 40 per cent, that is not disturbed. The gazette does not mean that our demand for the 40 per cent is no longer there. It was never mentioned in the MKMA63 meeting.
“So, Tungku, don’t worry. Because if we cancel the gazette for the special grant, we will not get the special grants. So how do we give back to the people as we have announced, that is to build 1,500 units of Rumah Mesra SMJ?
“I remember what was decided with the special grant, actually that was also what was decided by the previous government.
“I have said in my first meeting with the Prime Minister that this is what was presented and he (Anwar) said he would seriously consider it. So to me, there is no issue about this, about there are many more or about we don’t want that and so on,” he said.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
.jpg)
